Trecora gets BofA commitment for $135 million revolver, term loans

By Marisa Wong

Madison, Wis., Sept. 25 – Texas Oil & Chemical Co. II, Inc., a wholly owned subsidiary of Trecora Resources, entered into a commitment letter with Bank of America, NA as administrative agent and Bank of America Merrill Lynch as lead arranger for a $40 million revolving credit facility, a $70 million single-advance term loan facility and a $25 million delayed-draw term loan, according to an 8-K filing with the Securities and Exchange Commission.

The facilities may be increased by $40 million through an accordion option.

The revolver includes a $5 million sublimit for the issuance of standby or commercial letters of credit and a $5 million swingline sublimit.

Proceeds of the term loan and a portion of the revolver will be used to fund the company’s acquisition of SSI Chusei, Inc., a wholly owned subsidiary of Schumann/Steier Holdings, LLC. Texas Oil & Chemical will purchase the polyethylene wax manufacturer’s stock for $73 million.

Remaining proceeds will be used to refinance existing debt and provide ongoing working capital and for other general corporate purposes.

The proceeds of the delayed-draw term loan will be used to fund the company’s D-Train project.

Trecora is a specialty chemical manufacturer based in Sugar Land, Texas.

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