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.
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