NuStar reduces revolver to $1 billion, extends maturity to 2023

By Wendy Van Sickle

Columbus, Ohio, March 6 – NuStar Energy LP amended its revolving credit agreement dated Oct. 29, 2014 with JPMorgan Chase Bank, NA as administrative agent to extend the maturity by two years to Oct. 27, 2023, according to an 8-K filing with the Securities and Exchange Commission.

Additionally, the Friday amendment reduced borrowing capacity to $1 billion from $1.2 billion.

The applicable rate of the revolver was increased to Libor plus a margin ranging from 135 basis points to 275 bps, depending on credit ratings.

The amendment also adjusts the excess cash provisions such that NuStar Logistics, LP is required to use unrestricted cash and cash equivalents in excess of $75 million to prepay outstanding revolving loans.

Further, for purposes of testing compliance with the consolidated debt coverage ratio, consolidated debt shall be reduced by unrestricted cash in excess of $25 million, not to exceed $200 million, to the extent that NuStar Logistics intends to use such excess cash in the next 365 days to redeem any debt of NuStar Energy or its restricted subsidiaries, there are no loans outstanding under the revolver and liquidity is at least $1 billion.

Finally, the amendment provides Libor-replacement provisions and removes references to non-U.S. dollar-denominated borrowings and sublimits.

Truist Bank and Mizuho Bank, Ltd. are the co-syndication agents. Wells Fargo Bank, NA and PNC Bank, NA are the co-documentation agents.

NuStar is a San Antonio-based provider of storage and transportation for petroleum products.

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