Holly Energy Partners LP and its subsidiary Holly Energy Finance Corp. plan to start an offering of $500 million of senior notes due 2028 in a private placement, according to a Jan. 21 news release.

The partnership plans to use the net proceeds, along with borrowings from its revolving credit agreement, to redeem all of the outstanding 6.0% senior notes due 2024 issued by Holly Energy Partners and Holly Energy Finance, as well as related expenses.

In addition, the partnership issued a conditional notice, subject to completion of the offering, to redeem the 2024 notes on Feb. 5 at a price of 104.5% of the principal amount plus accrued and unpaid interest.

Holly Energy Partners is a provider of petroleum product and crude oil transportation, terminaling, storage and throughput services.