Susser Petroleum to get new revolver, term loan with units IPO

By Sara Rosenberg

New York, June 22 - Susser Petroleum Partners LP plans on getting a new revolving credit facility and borrowing about $146.8 million under a term loan in connection with its initial public offering of common units, according to an S-1 filed with the Securities and Exchange Commission on Friday.

The average interest rate on the revolver is expected at 2.58% based on a Libor forecast plus a margin.

Revolver borrowings will be available for general partnership purposes, including working capital, capital expenditures and acquisitions.

Susser Petroleum, a Houston-based wholesale distributor of motor fuels, is a limited partnership formed by Susser Holdings Corp.

Proceeds from the IPO will be used to fund a distribution to Susser Holdings and to purchase about $146.8 million of U.S. Treasury or other investment grade securities, which will be collateral for the new term loan.

The term loan will bear an average interest rate of about 0.25%, net of interest earned on the U.S. Treasury or other investment-grade securities pledged to secure the term loan.

The term loan proceeds will be distributed to Susser Holdings.

Susser Petroleum also said in the filing that plans are to finance its $42.5 million of expansion capital expenditures by selling $42.5 million of U.S. Treasury or other investment-grade securities, and immediately before selling the securities, it will repay $42.5 million of its new term loan with revolver borrowings.

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