Western Refining Gets $550 Million Loan for Northern Tier

Western Refining Inc. (WNR) is financing its acquisition of a 38.7 percent partnership interest in Northern Tier Energy LP with a $550 million term loan.

The owner of refineries in Texas and New Mexico is buying the stake from Acon Investments and TPG Capital for $775 million, the El Paso, Texas-based company said today in a statement. The remainder of the transaction was financed with $245 million in cash from the company.

Bank of America Corp. and UBS AG arranged the financing, according to the statement. The banks are hosting a lender meeting on Nov. 14 at 2 p.m. in New York to syndicate the debt to investors, according to a person with knowledge of the transaction.

The loan, which has no financial maintenance requirements, will expire in seven years, said the person, who asked not to be identified because terms are private.

“This investment further enhances our strategic goal of expanding our refining presence in areas with direct pipeline access to cost-advantaged crude oil resources,” Jeff Stevens, chief executive officer of Western Refining, said in the statement.

Northern Tier owns a refinery in St. Paul Park, Minnesota, holds a 17 percent stake in a crude oil pipeline and operates 163 convenience stores under the SuperAmerica retail brand.

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.