Home energy provider Star Group closed a $300 million asset-based revolving credit facility with JPMorgan Chase as administrative agent.
The facility expires in July 2023 and can expand to a borrowing base of $450 million during the heating season of December through April each year on a revolving line of credit for working capital purposes, including the issuance of up to $25 million in letters of credit.
The amendment provides a $100 million five-year senior secured term loan which will be used to repay existing outstanding debt. The term loan payment schedule is comprised of $10 million per year plus 25% of excess cash flow (not to exceed $15 million annually), as defined in the credit agreement, less certain voluntary prepayments made during the year, with final payment at maturity.
Bank of America and Citizens Bank acted as co-syndication agents on the transaction. KeyBank, Regions Bank, TD Bank and BMO Harris acted as co-documentation agents. JPMorgan Chase, Merrill Lynch and Citizens Bank served as joint lead arrangers and joint book runners.
Star Group provides and sells home heating products and services to residential and commercial customers.
