Alon USA agrees with Krotz Springs lenders on additional $50 million support

New York, March 5 - Alon USA Energy, Inc. said it has reached an agreement in principle with the Krotz Springs bank lenders on an additional $50 million of support for the Louisiana-based refinery.

The support will be in the form of cash and letters of credit in order to "better position its liquidity going forward."

Alon USA, which acquired Krotz Springs on July 3, 2008, said hurricanes Gustav and Ike "presented challenges" to supplying the refinery with crude and product movements from Krotz Springs were disrupted while power was restored.

In addition, the size of the debt taken on to acquire the refinery "presented challenges" when crude oil prices suffered dramatic decreases beginning in September.

Alon USA said it has been working with its lender to adjust Krotz Springs' debt "to match the current environment" and has agreed on the additional support as part of that.

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