Delek enters $670 million restated asset-backed revolver, term loan

By Marisa Wong

Madison, Wis., Jan. 23 - Delek US Holdings, Inc.'s wholly owned subsidiary, Delek Refining, Ltd., entered into a $670 million asset-backed credit agreement with Wells Fargo Bank, NA as administrative agent on Jan. 16, according to an 8-K filing with the Securities and Exchange Commission.

The ABL facility amends and restates Delek Refining's prior credit facility dated Feb. 23, 2010 with Wells Fargo Capital Finance, LLC as administrative agent.

The new facility consists of a $600 million revolving loan due January 2019, which includes a $55 million sublimit for swingline loans and a $550 million letter-of-credit sublimit, and a $70 million delayed single draw term loan.

The facility also includes an accordion feature that permits an increase in revolving credit borrowings of up to $875 million, subject to additional lender commitments.

The revolver, which is subject to a borrowing base, extends the April 2015 maturity under the previous facility.

Delek Refining may borrow the term loan at any time prior to June 1 and has the option to early terminate term loan commitments at any time prior to May 1 or allow the term loan commitments to expire if undrawn on June 1. If drawn, the term loan is subject to repayment in level principal installments, with a final balloon payment due on Dec. 31, 2016.

Borrowings under the revolver bear interest at one-, two- or three-month Libor plus an applicable margin of 200 basis points to 250 bps, depending on borrowing base availability. The term loan, if drawn, bears interest at one-month Libor plus an applicable margin.

Delek US Holdings is a guarantor of Delek Refining's obligations under the facility, with the guaranty being limited to $15 million, the filing noted.

The primary purpose of the facility is to support the working capital requirements of Delek Refining's petroleum refinery in Tyler, Texas.

Delek US is an integrated energy business based in Brentwood, Tenn.

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