Sunoco has amended certain key items of its $1.5 billion revolving credit facility and $2 billion term loan agreement to provide temporary covenant relief and financial flexibility over the upcoming quarters.

According to a related 8-K filing, Bank of America served as administrative agent, letter of credit issuer and swing line lender for the revolver, and Credit Suisse was administrative agent for the term loan.

Key terms to the amendment include:

• SUN’s maximum leverage ratio will be increased to 6.75x beginning in Q4/16 through December 31, 2017 with the following step-downs thereafter:
  • 6.50x at March 31, 2018
  • 6.25x at June 30, 2018
  • 6.00x at September 30, 2018
  • 5.75x at December 31, 2018
  • 5.50x at March 31, 2019 and thereafter
• SUN’s maximum senior secured leverage ratio will be set at 3.75x beginning with Q4/16 through December 31, 2016, decreasing to 3.50x at March 31, 2018 and falling away upon full repayment of term loan A
• SUN’s minimum interest coverage ratio will be set at 2.25x, falling away when the maximum leverage ratio covenant level returns to 5.50x