Westlake Chemical Partners gets $300 million revolving credit facility

By Toni Weeks

San Luis Obispo, Calif., April 30 – Westlake Chemical Partners LP announced it obtained a $300 million senior unsecured revolving credit facility due April 29, 2018 with a wholly owned subsidiary of Westlake Chemical Corp., according to an 8-K filing with the Securities and Exchange Commission.

Interest will accrue at Libor plus 200 basis points to 300 bps, with the actual margin based on leverage.

Under the terms of the agreement, the partnership may pay all or a portion of the interest on any borrowings in kind, in which case any such amounts would be added to the principal amount of the loan.

At closing, the company had borrowed $135.3 million under the facility for the acquisitions of an additional 2.6994% newly issued limited partner interest in Westlake Chemical OpCo LP (OpCo). The company said it intends to use revolver proceeds to purchase additional limited partnership interests in OpCo in the future, to repay funds borrowed under affiliate agreements for expansion projects and for general partnership purposes.

With the new agreement, the company must maintain a consolidated leverage ratio of either (i) 5.50:1 or less during the period through the end of the fourth fiscal quarter following certain material acquisitions, including material acquisitions of additional interests in OpCo, or (ii) 4.50:1 during any other period.

Houston-based Westlake Chemical Partners is a limited partnership formed by Westlake Chemical Corp. to operate, acquire and develop ethylene production facilities and other assets.

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