HollyFrontier closes $1 billion five-year senior revolving facility

By Susanna Moon

Chicago, July 8 – HollyFrontier Corp. obtained a $1 billion senior unsecured five-year revolving credit facility.

Interest on the loans is Libor plus 112.5 basis points to 200 bps based on the company’s debt ratings. The unused fee ranges from 15 bps to 35 bps.

The company closed on the credit agreement on July 1 with Union Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Wells Fargo Bank, NA is the syndication agent. Bank of America, NA, Citibank, NA and U.S. Bank NA are the co-documentation agents.

Union Bank, NA, Wells Fargo Securities, LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc. and U.S. Bank NA are the joint lead arrangers and bookrunners.

The facility includes up to $100 million of swingline loans.

Proceeds will be used to fund general corporate purposes.

The maximum amount of the agreement may be increased up to $750 million for a total size of $1.75 billion.

The company may prepay the loans under the agreement at any time.

The financial covenant does not permit net debt as of the last day of any fiscal quarter to exceed 65% of total capitalization.

The credit agreement matures on July 1, 2019.

HollyFrontier is a petroleum refiner based in Dallas.

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