SemGroup, Rose Rock increase revolving commitments under facilities

By Marisa Wong

Madison, Wis., Dec. 16 - SemGroup Corp. entered into a seventh amendment to its credit agreement dated June 17, 2011 on Dec. 11, and limited partnership Rose Rock Midstream, LP entered into a third amendment to its credit agreement dated Nov. 10, 2011 on Dec. 10, according to an 8-K filing with the Securities and Exchange Commission.

Royal Bank of Scotland plc is the administrative agent for both amended credit agreements.

The seventh amendment to the SemGroup credit agreement permits the increase of revolving commitments by an aggregate amount of $300 million and extends the availability period of the revolving commitments and the maturity date of those extensions to Dec. 11, 2018.

In addition, the amendment reduces the interest rate for revolving and term commitments. The applicable margin for Libor loans ranges from 200 basis points to 325 bps, depending on the company's leverage ratio. As of the effective date of the amendment, the applicable margin is 250 bps.

The commitment fee was also modified, and it ranges from 37.5 bps to 50 bps, based on the leverage ratio. The commitment fee is currently 37.5 bps.

The third amendment to the Rose Rock credit agreement increases revolving commitments to a total of $585 million and increases revolving letter-of-credit commitments to a total of $150 million.

SemGroup is a midstream service company. Rose Rock is engaged in the business of crude oil gathering, transportation, storage and marketing in Colorado, Kansas, Montana, North Dakota, Oklahoma and Texas. Both companies are based in Tulsa, Okla.

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