Tesoro Logistics enters $250 million five-year term loan via MUFG

By Marisa Wong

Morgantown, W.Va., Nov. 12 – Tesoro Logistics LP entered into a $250 million term loan agreement on Thursday with MUFG Union Bank, NA as administrative agent and a lender, according to an 8-K filing with the Securities and Exchange Commission.

MUFG intends to syndicate a portion of the term loans to other banks and financial institutions.

The term loan, which is guaranteed by some of the partnership’s subsidiaries, is scheduled to mature on Dec. 3, 2020.

Borrowings will bear interest at Libor plus an applicable margin. The applicable margin is initially 275 basis points and will step up by 25 bps per year beginning on Dec. 3, 2016, and these margins are subject to upward adjustment if the facility is not fully syndicated within 90 days.

The partnership is not required to repay installments on the term loans but is voluntarily prepayable from time to time without premium or penalty.

The loan agreement contains affirmative and negative covenants and events of default substantially similar to those under the partnership’s second amended and restated senior secured revolving credit agreement dated Dec. 2, 2014, except that the new agreement does not contain any financial covenants.

Tesoro is a San Antonio-based owner, operator, developer and acquirer of crude oil and refined products logistics assets.

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