Murphy Oil enters $325 million ABL revolver, $250 million term loan

By Wendy Van Sickle

Columbus, Ohio, Aug. 29 – Murphy Oil Corp. amended and restated its credit agreement dated Aug. 30, 2013 with JPMorgan Chase Bank, NA as administrative agent to provide for a five-year $325 million asset-based revolving credit facility and a four-year $250 million term facility, according to an 8-K filing with the Securities and Exchange Commission.

Up to $150 million of incremental borrowing capacity may be added under the revolver at Murphy’s request. The revolver has a $100 million sublimit for letters of credit.

At closing, Murphy borrowed $200 million under the term facility, which was used in part to repay term loans outstanding under the previous credit facility and which will also be used for general corporate purposes. The remainder of the term facility may be drawn in no more than two borrowings on or prior to Dec. 31 and may be used for general corporate purposes.

JPMorgan and Regions Business Capital are the joint lead arrangers and bookrunners.

Regions Bank is the syndication agent.

Bank of America, NA, Fifth Third Bank, Royal Bank of Canada and Wells Fargo Bank, NA are the documentation agents.

Interest on the ABL facility loans ranges from Libor plus 150 basis points to Libor plus 200 bps, based on the company’s total debt-to-EBITDA ratio. The facility fee ranges from 25 bps to 37.5 bps.

For the term loan, interest ranges from Libor plus 250 bps to Libor plus 275 bps, also depending on the debt-to-EBITDA ratio.

Murphy Oil must make quarterly principal payments on the outstanding term loan amount beginning on April 1, 2020.

Murphy USA Inc. must maintain a maximum secured debt-to-EBITDA ratio of 4.5x at any time when term loans are outstanding under the credit agreement.

Murphy Oil is an oil and gas exploration and production company based in El Dorado, Ark.

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