Citizens Agents New $450MM Lehigh Gas Facility
Lehigh Gas Partners announced it entered into a $450 million amended and restated credit facility. The new facility replaces the partnership’s previous $324 million credit facility.
According to a related 8-K filing, RBS Citizens, KeyBank and Wells Fargo Securities were shown as joint lead arrangers and joint bookrunners; Wells Fargo and KeyBank as co-syndication agents; Bank of America, Manufacturers and Traders Trust, Royal Bank of Canada and Santander Bank as co-documentation agents and Citizens Bank of Pennsylvania, as administrative agent for the lenders.
“We are extremely pleased to enter into the new facility. It increases our borrowing capacity and meaningfully enhances our financial and operational flexibility to complete acquisitions going forward,” said chairman and CEO Joe Topper. “We are gratified at the support that we received from our existing lenders in the process and welcome the addition of a high quality group of new lenders as well,” Topper added.
The new facility matures on March 4, 2019, and, subject to certain conditions, may be increased by an additional $100 million. Borrowings under the new facility bear interest, at the partnership’s option, at a rate equal to LIBOR, plus a margin of 2.00% to 3.25% per annum or the base rate plus a margin of 1.00% to 2.25% per annum, depending on the partnership’s total leverage ratio. As of March 4, 2014, the margin on the facility was 2.75% and 1.75%, respectively, for LIBOR and base rate borrowings.
As of March 4, 2014, the partnership had $149.7 million outstanding under the new facility and $286 million in borrowing capacity, net of outstanding borrowings and letters of credit.
Allentown, PA-based Lehigh Gas Partners is a wholesale distributor of motor fuels and owner and lessee of real estate used in the retail distribution of motor fuels. Formed in 2012, Lehigh Gas Partners distributes fuel to more than 800 locations and owns or leases more than 550 sites in thirteen states.