Holly Energy enters five-year $1.4 billion revolving credit facility

By Wendy Van Sickle

Columbus, Ohio, July 31 – Holly Energy Partners, LP entered into a five-year $1.4 billion senior secured revolving credit facility on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

The new revolver has a $50 million sublimit for letters of credit, which can be increased up to $150 million under some conditions.

The revolver may be increased up to a total of $1.7 billion.

Borrowings bear interest at Libor plus 150 basis points to 250 bps, depending on the total leverage ratio.

The fee for unused commitments ranges from 25 bps to 50 bps.

The initial maturity date is July 27, 2022.

Wells Fargo Securities, LLC was the bookrunner and a lead arranger along with MUFG Union Bank, NA, Bank of America Merrill Lynch, BBVA Compass, Citigroup Global Markets Inc. and TD Securities (USA) LLC.

MUFG Union Bank was syndication agent; Bank of America, Compass Bank, Citibank, NA and Toronto-Dominion Bank, New York Branch were the syndication agents; and Wells Fargo is the administrative agent.

Proceeds may be used for general partnership purposes.

Also on Thursday, Holly Energy Partners assumed the debt and other obligations of subsidiary Holly Energy Partners-Operating, LP under the subsidiary’s Feb. 14, 2011 credit agreement with Wells Fargo as agent.

Dallas-based Holly Energy operates a system of petroleum product and crude pipelines.

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