Sprague amends credit agreement to up, extend revolver commitments

By Marisa Wong

Los Angeles, May 12 – Sprague Resources LP wholly owned subsidiaries Sprague Operating Resources LLC and Kildair Service ULC entered into a first amendment on May 11 to their second amended and restated credit agreement dated May 19, 2020 with MUFG Bank, Ltd. as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Among other things, the amendment increases the lenders’ commitments under the credit agreements revolving acquisition facility to $450 million from $430 million and extends the date on which the commitments terminate to May 19, 2023 from May 19, 2022.

The amendment also modifies the specified margin for eurocurrency rate loans under (i) the committed U.S. dollar revolving working capital facility to range from 200 basis points to 250 bps, (ii) the uncommitted U.S. dollar revolving working capital facility to range from 175 bps to 225 bps and (iii) the multicurrency revolving working capital facility to range from 200 bps to 250 bps.

In addition, the amendment updates the definition of “permitted investor” in the credit agreement to address the pending sale by Sprague Resources Holdings LLC of its interest in Sprague Resources GP LLC, the general partner of Sprague Resources, the incentive distribution rights in the partnership and all of the limited partner interests that Sprague Holdings owns in the partnership.

Sprague is a Portsmouth, N.H.-based purchaser, distributor and seller of refined petroleum products and natural gas.

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