CVR Energy closed a $50 million senior secured asset-based revolver with an accordion feature that permits an increase in borrowings up to $25 million.

According to a related 8-K filing, UBS served as administrative agent for the transaction.

The proceeds of the loans may be used for capital expenditures and working capital and general corporate purposes of the credit parties and their subsidiaries. The ABL credit facility provides for loans and standby letters of credit in an amount up to the aggregate availability under the facility, subject to meeting certain borrowing base conditions, with sub-limits of the lesser of 10% of the total facility commitment and $5 million for swingline loans and $10 million for letters of credit.

At the option of the borrowers, loans under the ABL initially bear interest at an annual rate equal to 2.00%+LIBOR or 1.00% plus a base rate, subject to a 0.50% step-down based on the previous quarter’s excess availability.

The borrowers must also pay a commitment fee on the unutilized commitments to the lenders under the ABL credit facility equal to 0.375%  for the first full calendar quarter after the closing date and thereafter, 0.375% if utilization under the facility is less than 50% of the total commitments and 0.25% if utilization under the facility is equal to or greater than 50% of the total commitments. The borrowers must also pay customary letter of credit fees equal to 2.00%, subject to a 0.50% step-down based on the previous quarter’s excess availability, on the maximum amount available to be drawn under, and customary facing fees equal to 0.125% of the face amount of, each letter of credit.

All outstanding loans under the facility are due and payable in full on September 30, 2021.

Sugar Land, TX-based CVR Energy is a diversified holding company primarily engaged in the petroleum refining and nitrogen fertilizer manufacturing industries through its holdings in two limited partnerships, CVR Refining and CVR Partners.