Par Pacific Holdings and subsidiary companies Par Pacific, Par Petroleum and Par Petroleum Finance priced a proposed private $550 million senior secured term loan B due 2030. Wells Fargo is serving as the administrative agent.
The loans under the facility will be issued at a price equal to 98.5% of face value and bear interest at a rate equal to SOFR plus 4.25% (with SOFR not less than 0.5%). The interest rate spread will step down 25 basis points from 4.25% to 4% if Par Pacific’s credit rating is upgraded by certain ratings agencies to Ba3/BB-.
Par Pacific will use proceeds of the loans to refinance an existing term loan B due 2026 and its outstanding senior secured notes, as well as for general corporate purposes. The closing of the facility is expected to occur on or around Feb. 28, subject to customary closing conditions.
Par Pacific owns and operates energy, infrastructure and retail businesses.
Editor’s Notes: The original version of this article incorrectly reported that Bank of America was the administrative agent for the term loan. ABF Journal apologizes for the error.
