DKL

Business Context and Reporting Period

Company: Delek Logistics Partners, LP (DKL)
Filing Type: Form 8-K (Current Report)
Date of Report: March 26, 2026
Event: Entry into a new material definitive credit agreement and termination of the prior credit agreement.

Key Financial Metrics and Debt Structure

This filing details a refinancing transaction rather than operational financial results. Key debt metrics include:

• New Revolving Facility: $1,300.0 million aggregate commitment.
• Sublimits: $150.0 million for letters of credit; $50.0 million for swing line loans.
• Accordion Feature: Capacity to increase commitments by up to $525.0 million or 100% of EBITDA, whichever is greater.
• Interest Rates:
  • Base Rate: Prime/Fed Funds/Term SOFR + 0.50% to 1.50% margin.
  • Term SOFR: + 1.50% to 2.50% margin (0.00% floor).
• Commitment Fee: 0.30% to 0.50% per annum on unused commitments.
• Maturity Date: March 26, 2031 (subject to earlier termination based on Senior Notes maturity).

Material Changes Versus Prior Period

The Partnership replaced its Fourth Amended and Restated Credit Agreement (dated October 13, 2022) with a new agreement administered by Truist Bank. Key changes include:

• Administrative Agent: Changed from Fifth Third Bank to Truist Bank.
• Facility Structure: The new agreement consolidates the prior revolving and term loan facilities into a single Revolving Facility.
• Covenant Flexibility: Management states the new covenants provide additional flexibility compared to the prior agreement.
• Repayment: All outstanding indebtedness under the prior agreement was repaid in full using proceeds from the new facility.

Guidance, Outlook, Risks, and Covenants

Financial Covenants:

• Total Leverage Ratio: Maximum 5.25 to 1.00 (5.50 to 1.00 during Temporary Increase Periods).
• Senior Leverage Ratio: Maximum 3.75 to 1.00.
• Interest Coverage Ratio: Minimum 2.00 to 1.00.

Uses of Proceeds: Repayment of prior debt, working capital, permitted acquisitions, capital expenditures, and general corporate purposes. Risks: The filing highlights risks related to interest rate fluctuations, inflation, commodity prices, and the ability to generate sufficient cash flow to service debt. Forward-looking statements regarding borrowing capacity and covenant compliance are subject to these uncertainties.

Investor Verification Checklist

• Verify the current Total Leverage Ratio and Senior Leverage Ratio to ensure compliance with the new 5.25x and 3.75x thresholds.
• Review the full Credit Agreement (Exhibit 10.1) for specific definitions of EBITDA and the "Temporary Increase Period."
• Confirm the outstanding balance of the 8.625% Senior Notes due 2029 to understand the potential early maturity trigger for the new facility.
• Assess the impact of the new interest rate margins (1.50%–2.50% over Term SOFR) on future interest expense compared to the prior agreement.