June 8, 2009 (FinancialWire) — Holly Corp. (NYSE: HOC) has priced an offering of $200 million of senior unsecured notes. The 9 7/8% senior notes mature on June 15, 2017. The offering is scheduled to close on June 10.

The company plans to use the net proceeds from the offering to make post-closing inventory payments expected to be between $90 and $100 million in connection with its acquisition of the Tulsa Refinery on June 1 from Sunoco, Inc. (NYSE: SUN).

Holly will also use the proceeds for general corporate purposes, including planned capital expenditures.

Dallas-based Holly is an independent petroleum refiner and marketer that produces light products such as gasoline, diesel fuel and jet fuel and specialty lubricants.

The company operates through its subsidiaries a 100,000 BPSD refinery located in Artesia, New Mexico, a 31,000 BPSD refinery in Woods Cross, Utah and an 85,000 BPSD refinery located in Tulsa, Oklahoma.

A subsidiary of Holly owns an roughly 41% interest in Holly Energy Partners, L.P., which through subsidiaries owns or leases around 2,600 miles of petroleum product and crude oil pipelines in Texas, New Mexico, Utah and Oklahoma and tankage and refined product terminals in several Southwest and Rocky Mountain states.

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