Western Refining launches amendment to modify covenants, increase pricing

By Sara Rosenberg

New York, June 3 - Western Refining Inc. held a conference call on Tuesday to launch an amendment to its credit facility that would revise covenants, increase pricing, add a 3.25% Libor floor and increase the revolver to $1 billion from $800 million, according to a market source.

Under the amendment, the leverage covenant would be waived for the second quarter and replaced by a minimum-EBITDA requirement in the third and fourth quarters, the source said.

In addition, the leverage covenant would be loosened in 2009.

Also under the amendment, pricing on the loan would go up to Libor plus 375 basis points from Libor plus 175 bps, the source said.

Lenders are being offered a total of 100 bps for consents - half of which would be paid at the end of the second quarter and half would be paid at the end of the third quarter.

Western Refining is an El Paso, Texas-based independent crude oil refiner and marketer of refined products.

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