Alon USA Energy launches $700 million term B at Libor plus 525 bps

By Sara Rosenberg

New York, March 20 - Alon USA Energy Inc. launched a $700 million six-year secured term loan B (B2/B+) on Tuesday with price talk of Libor plus 525 basis points with a 1.25% Libor floor and an original issue discount of 98, according to a market source.

The loan includes 101 soft call protection for one year, the source said.

Goldman Sachs & Co. is the lead bank on the deal.

Security is all of the company's assets, other than those of its retail subsidiaries.

Proceeds will be used to repay an existing roughly $425 million term loan, to retire all of subsidiary Alon Refining Krotz Springs Inc.'s $216.5 million of 13½% senior secured notes due 2014 and for general corporate purposes.

Up to $250 million of the new term loan B may be a delayed-draw component depending on how the tender goes for the notes.

Ticking fees on any delayed-draw piece are being talked at 200 bps for the first three months and 300 bps for the following three months, the source added.

Commitments are due in early April.

Alon USA is a Dallas-based refiner and marketer of petroleum products.

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