Zenith plans $500 million credit facilities for Arc Logistics purchase

By Sara Rosenberg

New York, Sept. 26 – Zenith Energy U.S. LP has received a commitment for $500 million of senior secured credit facilities to help fund its acquisition of Arc Logistics Partners LP, according to a PREM14A filed with the Securities and Exchange Commission on Tuesday.

Barclays and Credit Suisse Securities (USA) LLC are the lead banks on the debt.

The facilities consist of a $50 million revolver, a $410 million term loan and a $40 million delayed-draw term loan.

Other funds for the transaction will come from equity.

Under the agreement, Arc is being bought for $16.50 per common unit in cash, although Lightfoot Capital Partners LP will receive $14.50 per common unit in cash for the roughly 5.2 million common units held by it, and Lightfoot Capital Partners GP LLC will receive $94.5 million for 100% of the membership interests in Arc GP.

Closing is expected at the end of the fourth quarter or early in the first quarter of 2018, subject to, among other things, approval by a majority of the outstanding Arc Logistics common unitholders and the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Zenith, a Warburg Pincus portfolio company, is a Houston-based liquids and bulk terminaling company. Arc, with corporate offices in New York and Houston, is engaged in the terminalling, storage, throughput and transloading of petroleum products and other liquids.

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