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Tesoro Logistics lifts revolving loans to $575 million, amends terms
By Susanna Moon
Chicago, May 23 - Tesoro Logistics LP boosted the size of its total revolving loan facility due Dec. 31, 2017 by $75 million to $575 million.
The company amended the facility dated Jan. 4 with Bank of America, NA as administrative agent on Wednesday, according to an 8-K filed with the Securities and Exchange Commission.
The amendment also modifies the definition of consolidated EBITDA to allow for adding back costs and expenses related to repairs and testing in connection with the partnership's planned acquisition of Chevron's Northwest products system and amends the calculation of the consolidated leverage ratio to reduce the consolidated funded debt by the partnership's unrestricted cash and cash equivalents, the release noted.
The credit agreement is guaranteed by all of the partnership's subsidiaries and secured by substantially all of the assets of the partnership and its subsidiaries.
Revolving loan terms
Tesoro closed on its $500 million amended and restated revolver with Bank of America as the administrative agent on Jan. 4, as previously reported.
Pricing on the revolver was initially set at Libor plus 225 basis points with a 37.5 bps unused fee. The spread ranges from Libor plus 175 bps to 275 bps and the unused fee ranges from 37.5 bps to 50 bps, both based on leverage.
The facility contained a $150 million accordion feature.
The company said at the time that it used proceeds to replace a $300 million revolver and that proceeds could be used for the company's purchase of Chevron Pipe Line Co.'s Northwest Products System for $400 million.
Tesoro Logistics is a San Antonio-based owner, operator, developer and acquirer of crude oil and refined products logistics assets.
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