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Subsequent Events (Notes) | 6 Months Ended
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Jun. 30, 2013
Subsequent Events [Abstract] |
Subsequent Events [Text Block] | Subsequent Events Distribution Declaration On July 26, 2013, our general partner's board of directors declared a quarterly cash distribution of $0.3950 per unit, payable on August 13, 2013, to unitholders of record on August 6, 2013. Amended and Restated Credit Facility On July 9, 2013, the Partnership amended and restated the Delek Logistics Revolving Credit Facility by entering into the Amended and Restated Credit Agreement. Under the terms of the Amended and Restated Credit Agreement, the lender commitments were increased from $175.0 million to $400.0 million. The Amended and Restated Credit Agreement also contains an accordion feature whereby the Partnership can increase the size of the credit facility to an aggregate of $450.0 million, subject to receiving increased or new commitments from lenders and the satisfaction of certain other conditions precedent. Borrowings denominated in U.S. dollars under the Amended and Restated Credit Agreement bear interest at either a U.S. dollar prime rate, plus an applicable margin, or a LIBOR rate, plus an applicable margin, at the election of the borrowers. Borrowings denominated in Canadian dollars under the Amended and Restated Credit Agreement bear interest at either a Canadian dollar prime rate, plus an applicable margin, or a CDOR (Canadian interbank bid) rate, plus an applicable margin, at the election of the borrowers. The applicable margin in each case varies based upon the Partnership's most recently available Leverage Ratio. Hopewell Acquisition On July 19, 2013, Delek Logistics purchased a 13.5 mile pipeline from Enterprise TE Products Pipeline Company LLC (the "Hopewell Pipeline"). The Hopewell Pipeline originates at the Tyler Refinery and terminates at the Hopewell delivery yard, where it connects to our pipeline that terminates at the Big Sandy terminal. The aggregate purchase price was approximately $5.4 million, which has been preliminarily allocated to property, plant and equipment. The property, plant and equipment valuation is subject to change during the purchase price allocation period. Amended and Restated Services Agreement (Big Sandy Terminal and Pipeline). In connection with the acquisition of the Hopewell Pipeline, on July 25, 2013 the Partnership and Delek entered into the Amended and Restated Services Agreement (Big Sandy Terminal and Pipeline) (the “Amended and Restated Services Agreement”), which amends and restates the Terminalling Services Agreement (Big Sandy Terminal) dated November 7, 2012 between the Partnership and Delek Refining to, among other things, include a minimum throughput commitment and a per barrel throughput fee that Delek will pay us for throughput along the pipelines from the Tyler Refinery to the Big Sandy terminal. Tyler Terminal and Tankage Acquisition On July 26, 2013, the Partnership, through Delek Marketing & Supply, LP ("DKL Marketing"), completed the Tyler Transaction with Delek Refining, pursuant to which DKL Marketing acquired a refined products terminal, storage tanks and related assets adjacent to the Tyler Refinery from Delek Refining. The purchase price paid for the assets acquired was $94.8 million in cash, comprised of $77.0 million financed with borrowings under the Partnership's amended and restated senior secured revolving credit facility and $17.8 million in cash on hand. In addition, the parties entered into several contracts and amended certain existing contracts in connection with the Tyler Transaction. The assets acquired in the Tyler Transaction consist of:
• | The refined products terminal located at the Tyler Refinery (the "Tyler Terminal"), which consists of a truck loading rack with nine loading bays supplied by pipeline from storage tanks located at the Tyler Refinery, along with certain ancillary assets. Total throughput capacity for the terminal is approximately 72,000 bpd. For the year ended December 31, 2012, approximately 55,000 bpd of refined products were throughput at this terminal.
• | Ninety-six storage tanks and certain ancillary assets (such as tank pumps and piping) located adjacent to the Tyler Refinery with an aggregate shell capacity of approximately 2.0 million barrels (such storage tanks and certain ancillary assets, the "Tyler Storage Tanks"). The Tyler Storage Tanks, together with the Tyler Terminal, are sometimes hereinafter referred to as the "Tyler Assets."
In connection with the Tyler Transaction, the Partnership entered into, amended and terminated, as applicable, the following material definitive agreements: Tyler Throughput and Tankage Agreement. On July 26, in connection with the Tyler Transaction, Delek Refining and DKL Marketing entered into the Tyler Throughput and Tankage Agreement (the "Throughput and Tankage Agreement"). Under the Throughput and Tankage Agreement, DKL Marketing will provide Delek Refining with throughput and storage services in return for throughput and storage fees. The initial term of the Throughput and Tankage Agreement is eight years and Delek Refining, at its sole option, may extend the term for two renewal terms of four years each. Amended and Restated Omnibus Agreement. On July 26, 2013, in connection with the Tyler Transaction, the Partnership entered into the Restated Omnibus Agreement with our general partner, DKL Marketing, certain of the Partnership's other subsidiaries, Delek US, Delek Refining and Lion Oil. The Restated Omnibus Agreement amends and restates the omnibus agreement dated November 7, 2012 by and among the parties and includes, among other things: (i) certain modifications in the reimbursement by Delek US and certain of its subsidiaries for certain operating expenses and capital expenditures incurred by the Partnership or its subsidiaries, (ii) certain modifications of the indemnification provisions in favor of the Partnership with respect to certain environmental matters, and (iii) the increase of the annual administrative fee payable by us to Delek for corporate general and administrative services. Tyler Lease and Access Agreement. On July 26, 2013, in connection with the Tyler Transaction, Delek Refining and DKL Marketing entered into the Tyler Lease and Access Agreement (the "Tyler Lease"). Under the Tyler Lease, DKL Marketing will lease from Delek Refining the real property on which the Tyler Assets are located. The Tyler Lease has an initial term of 50 years with automatic renewal for a maximum of four successive 10-year period thereafter. Tyler Site Services Agreement. On July 26, 2013, in connection with the Tyler Transaction, Delek Refining and DKL Marketing entered into the Tyler Site Services Agreement (the "Site Services Agreement"). Under the Site Services Agreement, Delek Refining will provide DKL Marketing with shared use of certain services, materials and facilities that are necessary to operate and maintain the Tyler Assets as currently operated and maintained. The term of the Site Services Agreement is the same as the Tyler Lease discussed above. Operation and Management Services Agreement. On July 26, 2013, in connection with the Tyler Transaction, the Partnership, our general partner and Delek Logistics Services Company terminated the operation and management services agreement dated as of November 7, 2012. We will continue to reimburse our general partner for services it provides to us, pursuant to the terms of our partnership agreement.

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- Definition The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business. + References No definition available. + Details
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