UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) November 15, 2002
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HOLLY CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 001-03876 75-1056913
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(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
100 Crescent Court, Suite 1600
Dallas, Texas 75201-6927
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (214) 871-3555
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ITEM 5. OTHER EVENTS
On November 15, 2002, the Company issued the following press release:
HOLLY CORPORATION AND LONGHORN PARTNERS PIPELINE, L.P.
ANNOUNCE SETTLEMENT OF LITIGATION
Dallas, Texas, November 15, 2002 - Holly Corporation (AMEX
"HOC") and Longhorn Partners Pipeline, L.P. today jointly announced an
agreement, developed in voluntary mediation, to settle pending
litigation.
Holly and Longhorn Partners have entered into a binding
agreement to terminate litigation brought in August 1998 by Longhorn
Partners against Holly and certain subsidiaries in a state court in El
Paso, Texas and to terminate litigation brought in August 2002 by Holly
and a subsidiary against Longhorn Partners and related parties in a state
court in Carlsbad, New Mexico.
Under the agreement, Holly will pay $25 million to Longhorn
Partners as a prepayment for the transportation of 7,000 barrels per day
of refined products from the Gulf Coast to El Paso in a period of up to 6
years from the date of the Longhorn Pipeline's start-up. The agreement
provides that Longhorn Partners will issue to Holly an unsecured
promissory note, subordinated to certain other indebtedness, that would
become payable with interest in the event that the Longhorn Pipeline does
not begin operations by July 1, 2004 or to the extent Longhorn Partners
is unable to provide Holly the full amount of the agreed transportation
services.
Final documentation to implement the settlement is expected to
be completed by late November, at which time the $25 million payment will
be made by Holly to Longhorn Partners.
Holly Corporation, through its affiliates, Navajo Refining
Company and Montana Refining Company, is engaged in the refining,
transportation, terminalling and marketing of petroleum products.
Longhorn Partners Pipeline, L.P., a limited partnership based
in Dallas, is developing the 700-mile Longhorn Pipeline to transport
gasoline, diesel and aviation fuel from the Texas Gulf Coast to Odessa
and El Paso, Texas.
FOR FURTHER INFORMATION, Contact:
Matthew P. Clifton, President
W. John Glancy, Senior Vice President,
General Counsel and Secretary
Holly Corporation
214/871-3555
This Current Report on Form 8-K contains certain "forward-looking
statements" within the meaning of the U.S. Private Securities Litigation Reform
Act of 1995. All statements, other than statements of historical facts included
in this Form 8-K, are forward-looking statements. Such statements are subject to
risks and uncertainties, including but not limited to risks and uncertainties
with respect to the actions of actual or potential competitive suppliers of
refined petroleum products in the Company's markets, the demand for and supply
of crude oil and refined products, the spread between market prices for refined
products and market prices for crude oil, the possibility of constraints on the
transportation of refined products, the possibility of inefficiencies or
shutdowns in refinery operations or pipelines, effects of governmental
regulations and policies, the availability and cost of financing to the Company,
the effectiveness of the Company's capital investments and marketing strategies,
the Company's efficiency in carrying out construction projects, and general
economic conditions. Although the Company believes that the expectations
reflected by such forward-looking statements are reasonable based on information
currently available to the Company, no assurances can be given that such
expectations will prove to have been correct. This summary discussion of risks
and uncertainties that may cause actual results to differ from those indicated
in forward-looking statements should be read in conjunction with the discussion
under the heading "Additional Factors That May Affect Future Results" included
in Item 7 of the Company's Annual Report on Form 10-K for the fiscal year ended
July 31, 2002. All forward-looking statements included in this Current Report on
Form 8-K and all subsequent oral forward-looking statements attributable to the
Company or persons acting on its behalf are expressly qualified in their
entirety by the cautionary statements set forth above.
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
HOLLY CORPORATION
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(Registrant)
Date: November 18, 2002 By /s/Stephen J. McDonnell
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Stephen J. McDonnell
Vice President and Chief
Financial Officer