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Fifth Third Agents Delek’s Facility Increase to $400MM

July 11, 2013, 07:11 AM
Filed Under: Energy

Delek Logistics Partners increased its lender commitments under its revolving bank credit facility to $400 million from $175 million to support the future growth of its business. Fifth Third Bank is the administrative agent, Bank of America, N.A. and Royal Bank of Canada are Co-Syndication Agents under this facility. In addition, Compass Bank, Barclays Bank, PLC, PNC Bank, National Association and RBS Citizens, N.A. are Co-Documentation Agents.

Uzi Yemin, chairman and chief executive officer of Delek Logistics' general partner, remarked: “We appreciate the strong support from our bank group. This amendment provides additional financial flexibility to support our growth plans by increasing borrowing capacity and the allowable leverage ratio. During the third quarter of 2013, we expect to complete the first purchase of logistics assets from our sponsor, Delek US, which should provide a solid foundation for growth as we continue to explore additional third-party opportunities.”

While the terms and conditions of the amended and restated credit facility are substantially unchanged from the predecessor facility, adjustments were made to increase to 4.00 times from 3.50 times the maximum allowable Leverage Ratio, as defined in the credit agreement. The minimum allowable Interest Coverage Ratio, as defined in the credit agreement, was also amended to 2.50 times from 2.00 times previously. The maturity date for the facility remains unchanged, expiring on November 7, 2017.

At June 30, 2013, outstanding borrowings under this facility were $90.0 million and $11.5 million of letters of credit were issued under the facility.

Delek Logistics Partners, LP, headquartered in Brentwood, TN, is a growth-oriented master limited partnership formed by Delek US Holdings, Inc. to own, operate, acquire and construct crude oil and refined products logistics and marketing assets.

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