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Bank Syndicate Amends, Restates Asset-Based Credit Facility for Approved Oil

November 07, 2022, 07:32 AM
Filed Under: Distribution

Approved Oil Co. of Brooklyn entered an amended and restated asset-based credit facility, which expires in October 2027 and provides the borrower under the Credit Facility the ability to borrow up to $160 million on a revolving line of credit for working capital purposes, and the issuance of an accordion up to $25 million. This accounts for a total credit facility of $185 million. The bank syndicate supporting the credit facility is comprised of four participants acting in various capacities, with JPMorgan Chase Bank as Administrative Agent, Manufacturers and Traders Trust Company, Bank United and Atlantic Union Bank.

Approved Oil is a 90-year-old family-owned energy distributor and full-service energy provider. They specialize in the sale of heating products and services to residential and commercial clientele, providing energy solutions that drive down costs while promoting efficiency and enhancing comfort. Including its natural gas and power divisions, Approved Energy serves customers in the New York and New Jersey geographic area.

The Company also sells and services heating and hot water equipment to its heating oil and energy customers and, to a lesser extent, provides these offerings to customers outside of its heating oil and service customer base. Approved oil is the largest installation company in New York City and a participating contractor with Con Edison and National Grid's rebate programs. Approved has obtained over $850,000 in rebates for our customers in 2022 alone. In the NYC Metropolitan area, the Company provides plumbing services, primarily to its home heating oil and commercial customer base.

The Company also operates terminals in New York, New Jersey, and Maryland where they sell wholesale fuel oil products.  In addition, Approved Oil sells diesel, and home heating oil on a delivery only basis. We believe Approved Oil is the largest retail, commercial and wholesale distributor of heating oil based upon sales volume.

Vincent Theurer, Approved Oil's President/CEO and Majority Owner stated, "The new credit facility will provide the liquidity and capital resources to allow the Company to achieve its financial goals and objectives now and for the foreseeable future."

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