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Press release from Business Wire

Holly Energy Partners, L.P. Announces Pricing of Public Offering of Common Units

Tuesday, March 19, 2013

Holly Energy Partners, L.P. Announces Pricing of Public Offering of Common Units08:51 EDT Tuesday, March 19, 2013 DALLAS (Business Wire) -- Holly Energy Partners, L.P. (NYSE: HEP) announced today the pricing of the public offering of 1,875,000 common units representing limited partner interests to be issued and sold by us, and 1,875,000 common units to be sold by HollyFrontier Corporation (NYSE: HFC) and certain of its affiliates as selling unitholders. The common units were priced at $40.80 per common unit. In connection with the offering, we granted the underwriters a 30-day option to purchase up to 281,250 additional common units from us and up to 281,250 additional common units from the selling unitholders. We expect to close the sale of the common units on March 22, 2013. We intend to use the net proceeds from the offering by us to repay indebtedness incurred under our credit facility and for general partnership purposes. Amounts repaid under our credit facility may be reborrowed from time to time, and we intend to reborrow certain amounts to fund capital expenditures in connection with our expansion of our crude oil transportation system in southeastern New Mexico, which are currently estimated to be approximately $35 million to $40 million. Holly Energy Partners will not receive any of the proceeds from the common units sold by the selling unitholders. Wells Fargo Securities, BofA Merrill Lynch, Citigroup, Credit Suisse, Deutsche Bank Securities and J.P. Morgan are acting as joint book-running managers for the offering. The offering is being made pursuant to an effective registration statement. The offering may be made only by means of a prospectus, copies of which may be obtained, when available, by sending a request to: Wells Fargo Securities Attn: Equity Syndicate Dept. 375 Park Avenue New York, New York 10152 Telephone: +1-800-326-5897 E-mail: cmclientsupport@wellsfargo.com BofA Merrill Lynch 222 Broadway, New York, NY 10038 Attn: Prospectus Department E-mail: dg.prospectus_requests@baml.com Citigroup c/o Broadridge Financial Solutions 1155 Long Island Ave. Edgewood, NY 11717 Telephone: +1-800-831-9146 E-mail: batprospectusdept@citi.com Credit Suisse c/o Credit Suisse Prospectus Department One Madison Avenue New York, NY 10010 Telephone: 1-800-221-1037 Email: newyork.prospectus@credit-suisse.com Deutsche Bank Securities Attention: Prospectus Department 60 Wall Street New York, NY 10005-2836 Telephone: 1-800-503-4611 Email: prospectus.cpdg@db.com J.P. Morgan via Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, New York, New York 11717 Telephone: (866) 803-9204 This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any of the securities described herein, nor shall there be any sale of these securities, in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state. About Holly Energy Partners, L.P. Holly Energy Partners, L.P., headquartered in Dallas, Texas, provides petroleum product and crude oil transportation, tankage and terminal services to the petroleum industry, including HollyFrontier Corporation, which currently owns a 44% interest (including a 2% general partner interest) in Holly Energy. Holly Energy owns and operates petroleum product and crude pipelines, tankage, terminals and loading facilities located in Texas, New Mexico, Arizona, Oklahoma, Washington, Idaho, Utah, Kansas and Wyoming. In addition, Holly Energy owns a 75% interest in UNEV Pipeline, LLC, the owner of a Holly Energy operated refined products pipeline running from Salt Lake City, Utah to Las Vegas, Nevada, and related product terminals and a 25% interest in SLC Pipeline LLC, a 95-mile intrastate pipeline system serving refineries in the Salt Lake City, Utah area. The statements in this press release relating to matters that are not historical facts are “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements use words such as “anticipate,” “project,” “expect,” “plan,” “goal,” “forecast,” “intend,” “should,” “would,” “could,” “believe,” “may,” and similar expressions and statements regarding our plans and objectives for future operations. These statements are based on our beliefs and assumptions and those of our general partner using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties. Although we and our general partner believe that such expectations reflected in such forward-looking statements are reasonable, neither we nor our general partner can give assurance that our expectations will prove to be correct. All statements concerning our expectations for future results of operations are based on forecasts for our existing operations and do not include the potential impact of any future acquisitions. Our forward-looking statements are subject to a variety of risks, uncertainties and assumptions. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, our actual results may vary materially from those anticipated, estimated, projected or expected. Certain factors could cause actual results to differ materially from results anticipated in the forward-looking statements. These factors include, but are not limited to: risks and uncertainties with respect to the actual quantities of petroleum products and crude oil shipped on our pipelines and/or terminalled, stored or throughput in our terminals; the economic viability of HollyFrontier Corporation, Alon USA, Inc. and our other customers; the demand for refined petroleum products in markets we serve; our ability to successfully purchase and integrate additional operations in the future; our ability to complete previously announced or contemplated acquisitions; the availability and cost of additional debt and equity financing; the possibility of reductions in production or shutdowns at refineries utilizing our pipeline and terminal facilities; the effects of current and future government regulations and policies; our operational efficiency in carrying out routine operations and capital construction projects; the possibility of terrorist attacks and the consequences of any such attacks; general economic conditions; and other financial, operational and legal risks and uncertainties detailed from time to time in our Securities and Exchange Commission filings. The forward-looking statements speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Holly Energy PartnersJulia Heidenreich, 214-954-6511Vice President, Investor RelationsorM. Neale Hickerson, 214-954-6511Investor Relations