Western Refining ups $325 million term loan B to Libor plus 600 bps

By Sara Rosenberg

New York, March 22 - Western Refining Inc. increased pricing on its $325 million covenant-light term loan B (B3/B) due March 15, 2017 to Libor plus 600 basis points from Libor plus 550 bps, according to a market source.

In addition, the original issue discount firmed at 99, the wide end of the initial guidance of 99 to 991/2, the source said.

As before, the loan has a 1.5% Libor floor and hard call protection of 102 in year one and 101 in year two with par prepayment for select asset sales.

Bank of America Merrill Lynch is the lead arranger on the deal.

The loan includes a $250 million accordion feature, subject to 3.0 times total leverage and 50 bps Most Favored Nation language.

The excess cash flow sweep is 50% with step-downs to 25% at less than 3 times total leverage and 0% at less than 2 times total leverage.

Proceeds will be used to refinance existing debt.

The company's existing term loan due May 30, 2014 is priced at Libor plus 750 bps with a 3.25% Libor floor. At Dec. 31, the fair value of the term loan was $346.9 million.

The company also has an asset-based revolver, which was amended on Dec. 23. It consists of a $145 million tranche due May 31, 2012 with pricing of Libor plus 375 bps to 450 bps based on leverage and a $655 million tranche due Jan. 1, 2015 with pricing of Libor plus 300 bps to 375 bps based on excess borrowing base capacity.

Western Refining is an El Paso, Texas-based independent refining and marketing company.

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