Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers G > Headlines for Genesis Energy LP > News item |
Genesis Energy closes revolver, term loan A totaling $950 million
By Marisa Wong
Los Angeles, April 12 – Genesis Energy, LP said it has syndicated and closed on a refinancing of its existing revolving credit facility with $950 million of new commitments from existing lenders, including a new $650 million revolver and a $300 million term loan A, both due March 15, 2024.
Proceeds from the term loan A will be used to repay an equivalent amount outstanding under the existing revolver.
The term loan will begin amortizing at the end of the fourth quarter of 2021 at $15 million per quarter through the fourth quarter of 2022, increasing to $25 million a quarter after that with the balance due at maturity.
The new facility contains some financial covenants, including a maximum consolidated leverage ratio of 5.85x for the first two quarters of 2021, 5.75x for the third quarter of 2021 through the first quarter of 2022 and 5.5x after that; a maximum senior secured leverage ratio of 2.50x; and a minimum interest coverage ratio of 2.5x.
Grant Sims, chief executive officer of Genesis, said in a press release, “Given improving business and economic conditions and our increasing free cash flow profile, we thought it was timely and prudent to proactively reduce the size, and extend the tenor, of our senior secured facility. With this extension, we now have no maturities until 2024.”
The company added that it is committed to reaching its target long-term leverage ratio of 4x.
Genesis is a diversified midstream energy master limited partnership based in Houston. Its operations include offshore pipeline transportation, sodium minerals and sulfur services, onshore facilities and transportation and marine transportation.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.