SemGroup amends credit agreement to add $300 million, loosen covenants

By Toni Weeks

San Luis Obispo, Calif., April 24 - SemGroup Corp. again amended its credit agreement dated June 17, 2011with Royal Bank of Scotland plc as administrative agent and collateral agent, according to an 8-K filing with the Securities and Exchange Commission.

The latest amendment increases commitments to either the revolving credit facility or term loan A by up to $300 million, subject to satisfaction of some conditions, and loosens the total leverage covenant requirement. It also amends the provision permitting SemGroup to incur unsecured senior or subordinated debt, lifting the $200 million cap on such debt. With the amendment, however, the company is required to adhere to other conditions, such as a senior secured leverage covenant and a total leverage covenant.

All revolving loans under the agreement are due June 20, 2016.

Bank of Nova Scotia, Barclays Bank plc, Bank of Oklahoma, Citibank, NA, Credit Agricole Corporate and Investment Bank and Deutsche Bank AG, New York Branch are lenders under the facility.

Based in Tulsa, SemGroup provides transportation, distribution and marketing services to producers and refiners of petroleum products.

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