Tesoro Panama obtains $500 million credit facility agreement

By Sara Rosenberg

New York, Oct. 17 - Tesoro Panama Co. SA entered into an agreement for a $350 million uncommitted 364-day senior secured revolving credit facility and a $150 million uncommitted 364-day senior secured trade letter-of-credit facility, according to an 8-K filed with the Securities and Exchange Commission on Monday.

BNP Paribas is the administrative agent on the deal that was completed on Oct. 11.

Pricing on the facilities is Libor plus 275 basis points.

Financial covenants include a leverage ratio of 10:1 and minimum adjusted tangible net worth, minimum adjusted net working capital and inventory level requirements.

The revolver has a $200 million accordion feature.

Tesoro Panama is a wholly owned subsidiary of Tesoro Corp. that was formed to use pipeline and tank assets in Panama.

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