United Refining enters five-year $475 million facility in two tranches

By Wendy Van Sickle

Columbus, Ohio, Oct. 23 – United Refining Co. obtained a new five-year $475 million credit facility on Tuesday, according to a press release.

The facility consists of a $250 million term loan and a $225 million revolving credit facility.

Proceeds of the term loan were used to finance United Refining’s cash tender offer for its $237.5 million of outstanding 10˝% senior notes due 2018. The term loan currently bears interest at less than 3% and will save the company about $17 million per year in interest expense at present rates, according to the release.

Proceeds of the revolver will be used for working capital needs and general corporate purposes.

PNC Bank acted as lead arranger and administrative agent of the financing.

The term loan and revolver are secured primarily by certain cash account, accounts receivable, inventory, a refinery in Warren, Pa., a Cobham Park tank farm and capital stock of Kiantone Pipeline Corp.

United Refining is a Warren, Pa.-based refiner and marketer of petroleum products.

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