"DALLAS, Oct. 20 /PRNewswire-FirstCall/ -- Holly Energy Partners, L.P. (NYSE: HEP - News; "HEP" or the "Partnership") announced today that it has entered into a definitive agreement with a subsidiary of Sinclair Oil Corporation ("Sinclair") to purchase certain logistics and storage assets at Sinclair's refinery located in Tulsa, Oklahoma. Holly Corporation (NYSE: HOC - News; "Holly"), an affiliate of HEP that controls HEP's general partner, is also a party to the definitive agreement and has agreed to purchase the refining assets at Sinclair's Tulsa refinery.

Under the terms of the agreement, HEP will purchase approximately 1.4 million barrels of storage as well as light products, asphalt and propane loading racks, and an associated refined product delivery pipeline for $75 million comprised of $21.5 million in cash and $53.5 million in HEP common units.

The transaction is subject to customary closing conditions as well as certain regulatory conditions.

In conjunction with the transaction, it is anticipated that subsidiaries of Holly and HEP will enter into a long-term contract similar to others between Holly and HEP under which Holly and HEP will agree to the fees Holly will pay for its use of the assets HEP is acquiring, including a minimum revenue commitment by Holly.

HEP expects the transaction to be immediately accretive to its distributable cash flow.

Matt Clifton, Chairman and CEO of HEP, said, "This acquisition represents a great opportunity for HEP. By combining with Holly Corporation to purchase Sinclair's Tulsa refining and logistics assets, we are acquiring a substantial set of assets at a very attractive price. The transaction will provide an additional long term guaranteed revenue stream and it will position HEP to pursue other growth opportunities as Holly executes on its plan to integrate its two Tulsa refining assets.""