Sunoco enters into new $800 million secured revolving facility

By Jennifer Chiou

New York, Nov. 29 - Sunoco, Inc. entered into on Nov. 22 a new $800 million secured revolving credit agreement with a syndicate led by JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filed with the Securities and Exchange Commission.

The new facility replaces the company's now-terminated multi-year unsecured revolver that was amended and restated as of July 25, 2007.

The new one-year credit agreement includes a letter-of-credit sub-facility, which is limited to the lesser of the entire commitment and the periodically adjusted borrowing base, and $125 million for swingline loans.

The amount of the borrowing base is calculated using the value of collateral that includes the company's eligible cash and cash equivalents; eligible crude oil and refined product inventories; certain receivables from inventory sales; and certain common units representing limited partnership interests in Sunoco Logistics Partners LP, a publicly traded subsidiary, the filing said.

Borrowings will accrue interest at Libor plus 125 basis points to 225 bps depending on ratings. The commitment fee ranges from 25 bps to 50 bps.

The 8-K stated that Sunoco is required to maintain specified levels of liquidity and collateral coverage.

Proceeds will be used for general corporate purposes.

The petroleum refining and chemical manufacturing company is based in Philadelphia.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.