HOLLY ENERGY PARTNERS, L.P. (NYSE:HEP) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
Background
Holly Energy Partners Operating, L.P. (HEP Operating), a wholly-owned subsidiary of Holly Energy Partners, L.P. (HEP), and HollyFrontier Refining & Marketing LLC (HFRM), a wholly-owned subsidiary of HollyFrontier Corporation (HollyFrontier), were parties to that certain Second Amended and Restated Refined Product Pipelines and Terminals Agreement, dated as of February 22, 2016 (as amended, the Refined Products Throughput Agreement), to which HEP Operating provided certain transportation and terminalling services to HFRM with respect to certain refined products pipelines and refined products terminals owned by subsidiaries of HEP. The Refined Products Throughput Agreement expired in accordance with its terms on July 1, 2019.
Fifth Amended and Restated Master Throughput Agreement
In connection with the expiration of the Refined Products Throughput Agreement, on July 1, 2019, HEP Operating and HFRM entered into the Fifth Amended and Restated Master Throughput Agreement (the Fifth Amended and Restated Master Throughput Agreement). The Fifth Amended and Restated Master Throughput Agreement amends and restates in its entirety the Fourth Amended and Restated Master Throughput Agreement, dated effective June 1, 2018. to the Fifth Amended and Restated Master Throughput Agreement, among other things, HFRM agreed to (a) minimum throughput commitments on the Refined Products Pipelines (as defined therein) owned by subsidiaries of HEP and will pay HEP Operating tariffs associated with the products movements on the Refined Products Pipelines, and (b) terminalling fees on the Refined Products Terminals (as defined therein) owned by subsidiaries of HEP. The tariffs and terminalling fees are subject to adjustment as provided in the Fifth Amended and Restated Master Throughput Agreement. The arrangement with respect to the Refined Products Pipelines and Refined Products Terminals has a term of 10 years. HollyFrontier will guarantee the obligations of HFRM under the arrangement, and the HEP will guarantee the obligations of HEP Operating.
The description of the Fifth Amended and Restated Master Throughput Agreement herein is qualified by reference to the copy thereof filed as Exhibit 10.1 to this report, which is incorporated by reference into this report in its entirety.
| 10.1 | Fifth Amended and Restated Master Throughput Agreement, dated as of July 1, 2019, by and between HollyFrontier Refining & Marketing LLC and Holly Energy Partners Operating, L.P. |