Genesis Energy obtains $1 billion revolver at Libor plus 150-250 bps

By Toni Weeks

San Luis Obispo, Calif., July 3 – Genesis Energy LP amended and restated its credit agreement on June 30 with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The agreement provides for a $1 billion senior secured revolving credit facility with a $500 million accordion feature. The facility matures on July 25, 2019 and has two one-year extensions.

Borrowings bear interest at Libor plus 150 basis points to 250 bps based on leverage. There is also a commitment fee of 25 bps to 37.5 bps, also based on leverage.

The new agreement is secured by a guarantee from substantially all of the company’s restricted subsidiaries and by liens on a substantial portion of its assets.

Under the agreement, the borrower will not permit its consolidated leverage ratio to be more than 5.00:1.00 except in the case of a permitted acquisition, in which case the ratio is capped at 5.50:1.00 for the first three full fiscal quarters after the acquisition closes.

In addition the borrower will not permit its consolidated senior secured leverage ratio to be more than 3.75:1.00 at any time. If a permitted acquisition occurs, however, it may not exceed 4.25:1.00 for three full fiscal quarters following the closing of the acquisition.

Finally, Genesis may not permit its consolidated interest coverage ratio to be less than 3.00:1.00 at any time, but in the case of a permitted acquisition it will not permit the ratio to be less than 2.75:1.00 for the three full fiscal quarters following the acquisition.

The fourth amended and restated agreement replaces the company’s third amended and restated credit agreement dated July 25, 2012. Proceeds from the new credit agreement were used to repay in full all amounts outstanding under the old credit agreement, which was terminated.

Bank of America, NA and Bank of Montreal are co-syndication agents. U.S. Bank NA is the documentation agent. Wells Fargo Securities, LLC, BMO Capital Markets, and Bank of America Merrill Lynch are joint lead arrangers and joint bookrunners.

Genesis is a Houston-based diversified midstream energy master limited partnership.

© 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.