Delek increases revolver to $850 million, extends to 2023

By Wendy Van Sickle

Columbus, Ohio, Oct. 4 – Delek US Holdings Inc. entered into a third amended and restated senior secured revolving credit agreement on Sept. 28 providing for an upsized $850 million of commitments in two tranches, according to an 8-K filing with the Securities and Exchange Commission.

The tranches include a U.S. dollar only tranche in the amount of $750 million, increased from $620 million, and a U.S. or Canadian dollar borrowing tranche in the amount of $100 million, upsized from $80 million.

Borrowings bear interest at Libor or CDOR plus a margin ranging from 175 basis points to 275 bps, depending on the leverage ratio.

The commitment fee ranges from 25 bps to 50 bps, also depending on the leverage ratio.

The maturity date was extended to Sept. 28, 2023 from Dec. 30, 2019.

The sublimit for swingline loans was increased to $115 million from $100 million.

The U.S. dollar-only sublimit for letters of credit was increased to $75 million from $65 million.

An accordion feature allows the facility to be increased up to $1 billion.

Fifth Third Bank, Bank of America Merrill Lynch, BBVA Compass, MUFG Bank, Ltd. and Royal Bank of Canada acted as joint lead arrangers and joint bookrunners.

Fifth Third Bank is administrative agent. Bank of America, NA, BBVA Compass, MUFG Bank and Royal Bank of Canada are co-syndication agents. Barclays Bank plc, Citizens Bank, NA, PNC Bank, NA, U.S. Bank NA, Bank Hapoalim, Regions Bank and SunTrust Bank are co-documentation agents.

The credit agreement amends and restates Delek’s credit agreement dated Dec. 30, 2014.

The amendment also increased the total leverage ratio to 5.25 times with allowances for temporary increases to 5.5 times. The total leverage ratio was 5 times previously.

Also, the senior leverage ratio was set at 3.75 times with allowances for temporary increases to 4 times.

Proceeds may be used for working capital, general corporate purposes and to refinance existing debt.

Delek is a Brentwood, Tenn.-based Permian-based integrated downstream energy company.

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