Susser Petroleum seals $250 million revolver, $180.7 million term loan

By Susanna Moon

Chicago, Sept. 25 - Susser Petroleum Partners LP closed a $250 million five-year revolving credit facility with Bank of America Merrill Lynch as lead arranger and book manager, according to an 8-K filing with the Securities and Exchange Commission.

Interest on the loans is initially Libor plus 200 basis points. The spread ranges from 200 bps to 325 bps, based on leverage. The commitment fee is 37.5 bps to 50 bps.

Bank of America, NA is administrative agent, swingline lender and letter-of-credit issuer. UBS Loan Finance LLC and Wells Fargo Bank, NA are the co-documentation agents.

The facility expires on Sept. 25, 2017 and may be increased up to an additional $100 million.

The agreement requires the company to maintain a minimum consolidated interest coverage ratio of at least 2.5 times and a consolidated total leverage ratio of no more than 4.5 times.

Also, if the company's consolidated total leverage ratio exceeds 3 times at the end of any fiscal quarter, the company will be required, upon request of the lenders, to grant mortgage liens on all real property owned by the partnership and its subsidiary guarantors, the filing noted.

Term loan

The company also obtained a $180.7 million term loan facility, expiring Sept. 25, 2015, and on Tuesday drew $180.7 million under the facility.

The term loan facility will be secured at all times by U.S. Treasury or other investment-grade securities in an amount equal to or greater than 98% of the outstanding principal amount of the term loan.

The company said on June 22 that it planned 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.

The average interest rate on the revolver was expected to be 2.58% based on a Libor forecast plus a margin.

Revolver borrowings will be used 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.

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