Western Refining flexes $550 million term B to Libor plus 325 bps

By Sara Rosenberg

New York, Nov. 21 - Western Refining Inc. lowered pricing on its $550 million seven-year senior secured term loan B (B1/BB-) to Libor plus 325 basis points from Libor plus 350 bps, according to a market source.

Also, the offer price on the loan was revised to par from 99, the source said.

The 1% Libor floor was unchanged.

Bank of America Merrill Lynch and UBS Securities LLC are the joint lead arrangers on the loan.

Proceeds are being used to fund the already completed acquisition of ACON Investments' and TPG's ownership interests in Northern Tier Energy LP for $775 million.

Other funds for the transaction came from $245 million in cash on hand.

As a result of the acquisition, Western Refining owns Northern Tier Energy's general partner and 35,622,500 limited partner units, or about 38.7% of Northern Tier Energy.

Western Refining is an El Paso, Texas-based refining and marketing company. Northern Tier Energy is a Ridgefield, Conn.-based downstream energy company.

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