Daily News: March 16, 2012

Alon USA to Establish New Term Loan Facility With Goldman Sachs

Alon USA Energy, Inc. announced that it has engaged Goldman Sachs Lending Partners LLC to assist it with the arrangement of a secured term loan facility in an aggregate principal amount of up to $700 million. The company intends to use the proceeds of borrowings under the facility to (1) repay all indebtedness outstanding under its existing term loan facility (approximately $425 million), (2) retire all of the indebtedness represented by the outstanding 13 1/2% senior secured notes due 2014 of its Alon Refining Krotz Springs, Inc. subsidiary (approximately $216.5 million), (3) pay related transaction costs and expenses and debt retirement premiums, and (4) to the extent of any remaining proceeds after the uses described above, for general corporate purposes. Borrowings under the facility are expected to be secured by liens on substantially all of the company’s assets, other than the assets of the company’s retail subsidiaries.

Alon USA Energy, Inc., headquartered in Dallas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States.