HollyFrontier gets $1 billion five-year revolver, closes merger

By Angela McDaniels

Tacoma, Wash., July 8 - HollyFrontier Corp. entered into a $1 billion senior secured revolving credit facility on July 1, according to an 8-K filing with the Securities and Exchange Commission.

The company changed its name to HollyFrontier from Holly Corp. after acquiring Frontier Oil Corp. on July 1.

The revolver matures on July 1, 2016.

There is a $250 million accordion feature.

The interest rate is Libor plus 150 basis points to 250 bps, and the commitment fee is 37.5 bps to 50 bps. Both are based on the company's ratings.

Union Bank, NA is the administrative agent. Union Bank and BNP Paribas Securities Corp. acted as lead arrangers and bookrunners. The documentation agents are Bank of America, NA and Wells Fargo Capital Finance, LLC, and the syndication agent is BNP Paribas.

The credit agreement imposes limitations on investments; limitations on the company's ability to incur debt, make loans, acquire other companies, change the nature of its business, enter a merger or consolidation or sell assets; and covenants that require, during applicable trigger periods, the maintenance of a specified EBITDA-to-fixed charges ratio.

Borrowings can be used to fund capital expenditures and acquisitions, for working capital and general corporate purposes, to refinance the previous senior secured credit agreements of Holly and Frontier and to pay the out-of pocket expenses and costs of the merger.

HollyFrontier terminated its $400 million credit facility due March 2013 with Bank of America as administrative agent. Frontier Oil and Frontier Oil and Refining Co. LLC terminated their $500 million credit facility due August 2012 with Union Bank as administrative agent.

HollyFrontier is a Dallas-based petroleum refiner. Frontier Oil is a Houston-based oil refiner and wholesaler of refined petroleum products.

© 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.