Susser Petroleum Partners enters $1.25 billion five-year revolver

By Marisa Wong

Madison, Wis., Oct. 1 – Susser Petroleum Partners LP entered into a new credit agreement on Sept. 25 for a $1.25 billion revolving credit facility that expires Sept. 25, 2019, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, NA is the administrative agent, collateral agent, swingline lender and letter-of-credit issuer; BofA Merrill Lynch, Bank of Tokyo-Mitsubishi UFJ, Ltd., BBVA Compass, DNB Markets, Inc. and RBS Securities Inc. are the joint lead arrangers and joint bookrunners; and Bank of Tokyo-Mitsubishi UFJ, BBVA Compass, DNB Markets and RBS Securities are also co-syndication agents.

Proceeds from the new credit agreement were used to pay off the partnership’s existing revolving credit facility entered into on Sept. 25, 2012.

The new revolver can be increased from time to time, up to an additional $250 million.

Borrowings will bear interest at Libor plus an applicable margin ranging from 150 basis points to 250 bps, depending on the company’s leverage ratio.

Once Susser obtains an investment-grade credit rating, the applicable margin will decrease to a range of 112.5 bps to 200 bps, depending on the partnership’s senior unsecured non-credit enhanced long-term debt ratings.

In addition, the unused portion of the revolver will be subject to a commitment fee ranging from 25 bps to 35 bps, based on the leverage ratio. When the company achieves an investment-grade rating, the commitment fee will decrease to a range of 12.5 bps to 27.5, based on the credit rating.

The credit agreement requires the partnership to maintain a leverage ratio of not more than 5.50 to 1.00. The maximum leverage ratio is subject to upward adjustment of not more than 6.0 to 1.00 for a period not to exceed three fiscal quarters in the event the partnership engages in specified acquisitions in excess of $50 million.

Susser is a Houston-based wholesale distributor of motor fuels.

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