SemGroup plans $300 million add on to credit facility

New York, April 29 - SemGroup, LP said it is planning a $300 million increase to its $1.05 billion credit facility.

The extra borrowing capacity will be used to finance the Tulsa, Okla., midstream service company's acquisition of Koch Pavement Solutions' asphalt operations and assets located in the United States and Mexico.

Banc of America Securities will be lead arranger and bookrunner for the extra loans.

The $300 million will be made up of a $100 million increase to the existing $625 million working capital revolving credit facility and a $200 million increase to the existing $375 million of institutional term loans. The existing facility also includes a $50 million revolver for general corporate purposes.

SemGroup intends to close the transaction in the second quarter.

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