Tesoro Logistics to get $150 million senior secured credit facility

By Sara Rosenberg

New York, Jan. 4 - Tesoro Logistics LP plans on getting a new $150 million senior secured revolving credit facility, according to an S-1 filed with the Securities and Exchange Commission on Tuesday.

The unused fee on the revolver is anticipated to be 50 basis points.

Financial covenants are expected to include a consolidated leverage ratio and an interest coverage ratio.

Proceeds will be available to fund working capital and to finance acquisitions and other capital expenditures.

The revolver is being obtained in connection with the company's initial public offering of common units, the proceeds of which will be used for general partnership purposes and to make a cash distribution to Tesoro Corp.

At close, $50 million is expected to be drawn under the revolver to fund an additional cash distribution to Tesoro.

Tesoro Logistics is a San Antonio-based limited partnership recently formed by Tesoro to own, operate, develop and acquire crude oil and refined products logistics assets.

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