Tesoro launches $500 million term loan B at Libor plus 275 bps

By Sara Rosenberg

New York, Jan. 16 - Tesoro Corp. launched with a call its $500 million three-year term loan B on Wednesday at price talk of Libor plus 275 basis points with an offer price of 99¾ to par, according to a market source.

The loan has 101 soft call protection for one year, the source said.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to help fund the acquisition of BP's integrated Southern California refining and marketing business for $1.18 billion plus the value of inventory at the time of closing.

Other funds for the transaction will come from cash.

Closing is expected before the middle of the year, subject to regulatory approval.

Tesoro is a San Antonio-based refiner and marketer of petroleum products.

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