Daily News: January 3, 2013

Compass Bank Provides New L/C for Par Petroleum Acquisition

Par Petroleum announced that it has acquired SEACOR Energy (SEI), an indirect wholly owned subsidiary of SEACOR Holdings, for a cash purchase price of approximately $14 million plus estimated net working capital of approximately $4 million at closing. SEI is a transportation, distribution and trading company focused in the crude oil arena. Following the acquisition, SEI, which is headquartered in Houston, TX, was renamed Texadian Energy.

The purchase price for the acquisition was funded with a combination of cash and additional borrowings under an amendment to the company’s existing delayed draw term loan facility referred to as the Tranche B Loan. The lenders under the company’s existing delayed draw term loan are also lenders under the Tranche B Loan. The total commitment of $35 million was drawn at closing, and the Tranche B Loan bears interest at 9.75% and matures on July 1, 2013.

The obligations under the Tranche B Loan are secured by a lien on substantially all of the assets of the company and its subsidiaries, including Texadian, but excluding the company’s equity interests in Piceance Energy. In addition to funding a portion of the purchase price, the Tranche B Loan will provide cash collateral for a new $30 million letter of credit facility with Compass Bank that will support Texadian’s crude oil operations.

“The addition of Texadian’s transportation and trading business is a significant first step in the growth and expansion of our business plan,” said John T. Young, Jr., the company’s CEO. “We are excited about the addition of the Texadian team and believe that this transaction will be immediately accretive to earnings and cash flow. We expect that the acquisition will pay for itself within two years.”

Houston, TX-based Par Petroleum manages and maintains interests in a wide variety of energy-related assets, including natural gas assets located in the Piceance Basin.