Tesoro Expands Borrowing Under Credit Line to Up to $4 Billion

Tesoro Corp. (TSO), the independent petroleum refiner based in San Antonio, amended a credit pact to allow for as much as $4 billion in borrowings under a revolver that has a current capacity of $1.85 billion.

The debt pays interest at 1.5 percentage points more than the London interbank offered rate and is tied to ratings, the company said today in a regulatory filing. JPMorgan Chase & Co. led the financing, which expires Jan. 4, 2018.

Tesoro will repay drawn portions of the expanded line by $500 million within the first 18 months of the increase and by another $500 million within the first two years, according to the filing.

Its subsidiary, Tesoro Logistics LLP (TLLP), boosted a credit line to $500 million from $300 million, with the ability to increase borrowings to $650 million, the company said in the filing. The debt comes due in Dec. 31, 2017.

An e-mail sent to Tesoro media relations wasn’t immediately answered.

In a revolving credit facility, money can be borrowed again once it’s repaid.

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net.

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net.

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.