Par Petroleum launches $550 million term loan B at SOFR plus 425 bps

By Sara Rosenberg

New York, Feb. 6 – Par Petroleum LLC launched on Monday its $550 million seven-year covenant-lite term loan B (B1/BB) with price talk of SOFR+10 basis points CSA plus 425 bps with a 0.5% floor and an original issue discount of 97 to 98, according to a market source.

The term loan has 101 soft call protection for six months, amortization of 1% per annum and 50 basis points MFN with a 12-month sunset.

Security is a first lien on substantially all loan party personal property assets and owned real property subject to certain thresholds and exclusions in the collateral documents.

Wells Fargo Securities LLC, BofA Securities Inc. and MUFG are the lead arrangers on the deal.

Commitments are due at noon ET on Feb. 14.

Proceeds will be used to refinance the company’s 7¾% notes due 2025, 12 7/8% senior secured notes due 2026 and existing term loan B due 2026, and for general corporate purposes.

The company also plans to refinance its existing ABL credit facility due 2025 with a new $150 million ABL credit facility due 2028, which it expects to upsize to about $550 million upon the closing of its previously announced acquisition of 63,000 bpd Billings refinery and associated marketing and logistics assets from ExxonMobil Corp. for $310 million, plus hydrocarbon and other inventory to be valued at closing.

Closing on the acquisition is expected in the second quarter, subject to customary conditions.

Par Petroleum is a subsidiary of Par Pacific, a Houston-based refiner, marketer and distributor of crude oil.

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