Western Refining said it completed an amendment and restatement of its revolving credit agreement. The amended agreement, which is comprised of a syndicate of banks with commitments of $900 million, matures in April 2018. Additionally, the amendment provides for a reduction in borrowing rates and increased covenant flexibility.

The facility is used to fund general working capital needs and letter of credit requirements. Merrill Lynch, Pierce, Fenner & Smith and Wells Fargo Capital Finance acted as joint lead arrangers and joint bookrunners of the facility.

The amended terms of the agreement include revised borrowing rates. Borrowings can be either base rate loans plus a margin ranging from 0.75% to 1.25% or LIBOR loans plus a margin ranging from 1.75% to 2.25%, subject to adjustment based upon the average excess availability. The amendment also provides for a quarterly commitment fee ranging from 0.25% to 0.50% per annum, subject to adjustment based upon the average utilization ratio, and letter of credit fees ranging from 1.75% to 2.25% per annum payable quarterly, subject to adjustment based upon the average excess availability.

“We are very pleased with the execution of this transaction as we continue to strengthen our balance sheet. The amendment provides Western increased financial flexibility which will allow us to continue to execute our business plan,” said Jeff Stevens, Western’s president and CEO. “This is a strong show of support from our lenders and we appreciate their continued confidence in Western.”