Delek Logistics Partners (DKL) said late Tuesday it has started an underwritten public offering of $150 million of units representing limited partner interests in the company.

Underwriters will be given a 30-day option to buy up to an additional $22.5 million of units, the company said.

The offering is subject to market conditions and there's no assurance as to whether or when it may be completed, or as to its size or terms, Delek said.

Net proceeds will be used to redeem the company's convertible preferred units and to repay debt, the company said.

Delek Chief Executive Avigal Soreq and some other company executives have shown interest in buying up to $300,000 of the units offered in the offering at the price offered to the public, the company said.

Shares of the company fell 9.4% in after-hours activity.

Price: 40.48, Change: -4.19, Percent Change: -9.38