Frontier Oil amends, restates loan, lifting amount, extending term

By Jennifer Chiou

New York, Oct. 4 - Frontier Oil Corp.'s wholly owned subsidiary, Frontier Oil and Refining Co., entered into a third amended and restated revolving credit agreement to increase the availability to $350 million from $250 million and extend the maturity to Oct. 3, 2011, according to an 8-K filing with the Securities and Exchange Commission.

Union Bank of California, NA was the administrative agent, and BNP Paribas was syndication agent.

The Houston-based oil refiner and wholesale marketer of petroleum products noted that other amendments reduce the applicable margin by 5 to 25 basis points to a range from Libor plus 100 bps to 175 bps.

The modifications also:

• Eliminate the limitation on dividends and stock repurchases, as long as no default exists and the payment of the dividends or repurchases of common stock would not result in a default;

• Eliminate the current ratio, minimum tangible net worth and minimum fixed-charge financial covenants;

• Increase the permitted consolidated long-term funded indebtedness to consolidated EBITDA ratio to 4.00 from 3.50; and

• Add a total debt-to-capitalization covenant that prohibits the ratio of consolidated long-term funded debt to the sum of consolidated long-term funded debt and stockholders equity from exceeding 55%.

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