Giant Industries amends loan, changing financial covenants

By Sara Rosenberg

New York, Oct. 30 - Giant Industries Inc. amended its credit facility, modifying financial covenants to reflect the petroleum industry's low refining-margin environment.

The amendment accommodates the company's debt reduction strategy to sell non-core and under-performing assets and limit capital expenditures throughout 2003. In return for these changes, the company has agreed to provide additional collateral, pay certain fees and to increase the interest rate on both the $100 million revolver and a $40 million loan facility.

"We are very pleased with the continued support that we have received from our bank group and term lenders. It's clear that they understand the cyclical nature of our business and share our anticipation for an improved refining cycle," said Fred Holliger, chairman and chief executive officer, in a news release.

Giant Industries is a Scottsdale, Ariz. refiner and marketer of petroleum products.

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