Par Pacific Secures $500M Senior Notes and $1.8B ABL Credit Facility

summarizeSummary

Par Pacific Holdings completed a $500 million senior notes offering and secured a new $1.8 billion asset-based revolving credit facility, significantly enhancing its liquidity and financial flexibility.

check_boxKey Events

• Completion of Senior Notes Offering

  Par Petroleum, LLC, a subsidiary, completed the issuance of $500 million in 7.375% Senior Notes due 2034 in a private placement. These notes are callable prior to June 1, 2029, at 100% plus a make-whole premium, and up to 40% can be redeemed with equity offering proceeds at 107.375% prior to that date. After June 1, 2029, they are callable at declining premiums.

• Establishment of New ABL Credit Facility

  The company entered into an Amended and Restated Asset-Based Revolving Credit Agreement, establishing a new senior secured asset-based revolving credit facility of up to $1.8 billion, with an additional $500 million incremental facility. This facility matures on May 14, 2031, and bears interest at SOFR plus a margin ranging from 1.25% to 1.75% based on excess availability.

• Purpose of Financing

  Proceeds from the new ABL facility are designated for capital expenditures, turnaround expenditures, working capital, and general corporate purposes, providing significant operational flexibility.

• Covenants and Guarantees

  The notes and ABL facility include customary restrictive covenants, limiting additional indebtedness, liens, dividends, and asset sales. The notes are fully and unconditionally guaranteed on a senior unsecured basis by the company and its existing subsidiaries that guarantee the ABL Credit Facility.

auto_awesomeAnalysis

Par Pacific Holdings has significantly bolstered its financial position by completing a $500 million senior notes offering and establishing a new $1.8 billion asset-based revolving credit facility. This substantial capital infusion provides the company with enhanced liquidity and financial flexibility, crucial for funding capital expenditures, working capital, and general corporate purposes. The new ABL facility, in particular, represents a major increase in available credit, extending the company's financial runway and supporting its operational and strategic initiatives.