Alon USA sets Wednesday launch for $450 million term loan

By Sara Rosenberg

New York, May 5 - Alon USA Energy Inc. has scheduled a conference call for Wednesday at 12:30 p.m. ET to launch its proposed $450 million seven-year senior secured term loan, according to a market source. Credit Suisse is the lead bank on the deal.

Proceeds will be used to help fund the acquisitions of Paramount Petroleum Corp. and Edgington Oil Co.

Under the Paramount acquisition agreement, Alon USA will pay $307 million for all equity interests in Paramount and assume approximately $100 million of debt, net of cash.

Under the Edgington acquisition agreement, Alon USA will pay approximately $52 million in cash plus an amount to be determined for the value of inventory.

Both transactions are targeted for a late-May close, following regulatory approvals.

Leverage on a net basis is expected to be in the range of 50%.

Alon USA is a Dallas-based independent refiner and marketer of petroleum products. Paramount Petroleum is a Paramount, Calif.-based manufacturer, producer and distributor of asphalt products. Edgington is a Long Beach, Calif.-based heavy crude refining company.

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