Oil refiner Delek US slides after unveiling $400 mln convertible bond offering

By Reuters News

** Shares of oil refiner Delek US Holdings DK.N slide 8.3% to $66.25 before the bell on Thurs as it seeks capital raise

** DK announces private offering of $400 mln convertible bonds (CBs) due Nov 1, 2031

** Co intends to use net proceeds for general corporate purposes, including partial repayment of term loan

** It also plans to use some proceeds to fund capped calls, derivative transactions employed to offset potential dilution

** Brentwood, Tennessee-based DK has ~$4.4 bln market cap

** DK stock, which has fallen past four sessions, had surged ~144% YTD through Weds. It hit record intraday high of $82.27 on Fri

** Of 13 analysts, 7 rate the stock "strong buy" or "buy", 5 "hold" and 1 "sell"; median PT of $72 up from $62 a month ago and $50 on Jun 24, per LSEG

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.