SemGroup to get $350 million revolver add-on

By Sara Rosenberg

New York, Feb. 12 - SemGroup Energy Partners LP is planning on getting a $350 million add-on to its revolving credit facility to help fund the acquisition of terminalling and storage facilities from SemMaterials LP, according to an S-1/A filed with the Securities and Exchange Commission Tuesday.

Wachovia and Bank of America are the joint lead arrangers on the deal, with Wachovia the bookrunner.

Pricing on the amended revolver will range from Libor plus 150 basis points to 275 bps, depending on the company's total leverage ratio and senior secured leverage ratio.

Currently, the company's revolver is sized at $250 million (it's increasing to $600 million through this amendment) and pricing ranges from Libor plus 125 bps to 225 bps, depending on the company's total leverage ratio.

The company is buying 46 U.S. liquid asphalt cement and residual fuel oil terminalling and storage facilities for $378.8 million.

Other financing will come from a 6 million common units offering.

SemGroup is a Tulsa, Okla.-based owner and operator of a diversified portfolio of complementary midstream energy assets.

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