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JPMorgan Chase Agents Syndicated Working Capital Revolver for Star Group

July 03, 2018, 07:00 AM
Filed Under: Energy Services

Star Group, L.P., a home energy distributor and services provider, announced that it has entered into a fourth amended and restated asset-based revolving credit facility, which expires in July 2023 and provides the ability to borrow up to $300 million ($450 million during the heating season from December through April of each year) on a revolving line of credit for working capital purposes, including the issuance of up to $25 million in letters of credit.

The amended and restated credit facility also provides for a $100 million five year senior secured term loan; proceeds from the term loan will be used to repay existing outstanding debt. The term loan payment schedule is comprised of $10 million per year plus 25% of excess cash flow (not to exceed $15 million annually), as defined in the credit agreement, less certain voluntary prepayments made during the year, with final payment at maturity. Additional details are provided in the Company's filings with the SEC.

The bank syndicate supporting the credit facility is comprised of 12 participants, with JPMorgan Chase Bank, N.A. as Administrative Agent, Bank of America, N.A. as Co-Syndication Agent, Citizens Bank, N.A. as Co-Syndication Agent, Key Bank National Association, Regions Bank, T.D. Bank, N.A., and BMO Harris Bank, N.A. as Co-Documentation Agents, and J.P. Morgan Chase Bank, N.A., Merrill Lynch, Pierce, Fenner & Smith Inc., and Citizens Bank, N.A. as Joint Lead Arrangers and Joint Book Runners.

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