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Trecora’s Texas Oil unit lifts revolver, term loan to $162.5 million
By Wendy Van Sickle
Columbus, Ohio, Aug. 1 – Texas Oil & Chemical Co. II, Inc., a wholly owned subsidiary of Trecora Resources, entered into a fourth amendment to its amended and restated credit agreement on Tuesday increasing the revolving commitment by $15 million to $75 million and the term loan facility to $87.5 million, according to an 8-K filing with the Securities and Exchange Commission.
The term loan comprises new term loan borrowings and about $60.4 million of previously outstanding term loans.
The amendment also increased the size of the accordion feature to allow for up to $50 million of additional revolving commitments or incremental term loans.
The maturity date was extended to July 31, 2023 from Oct. 1, 2019.
Also, the interest rate margin was decreased by 75 basis points to Libor plus a spread of 125 bps to 225 bps, depending on consolidated leverage ratio.
The commitment fee was reduced to a range of 20 bps to 30 bps, from 25 bps to 37.5 bps previously.
Term loan borrowings continue to be subject to quarterly amortization payments based on a commercial style amortization method over a 20-year period, with the balance due at maturity.
Bank of America Merrill Lynch and Citibank, NA are the joint bookrunners and lead arrangers. Bank of America, NA is the administrative agent. BMO Harris Bank NA is the syndication agent.
Proceeds of the new borrowings under the term loan facility were used to repay a portion of the outstanding borrowings under the revolving facility and pay fees and expenses of the transaction.
Trecora is a specialty chemical manufacturer based in Sugar Land, Texas.
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