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Sovereign Bank Provides $10MM Term Loan to Blue Dolphin Energy

December 30, 2015, 07:35 AM
Filed Under: Energy Services

Blue Dolphin Energy Company, an independent refiner and marketer of refined petroleum products in the Eagle Ford Shale, announced the closing of an additional $10.0 million loan facility. On December 4, 2015, Lazarus Refining & Marketing, LLC, a wholly owned subsidiary of Blue Dolphin, closed on a $10.0 million term loan with Sovereign Bank, a Texas state bank. The Term Loan is guaranteed under the Business & Industry Guaranteed Loan Program administered by the United States Department of Agriculture Rural Development Program.

The proceeds of the Term Loan will support continued commercial development of Blue Dolphin's Nixon Facility, specifically construction of an additional 300,000 barrels of petroleum storage tanks, as well as be used to refinance an existing $3.0 million bridge loan with Sovereign. In June 2015, Blue Dolphin announced plans to expand the Nixon Facility and is currently constructing 500,000 barrels of petroleum storage tanks at the refinery.

The Term Loan matures in December 2034 and accrues interest at a rate based on the Wall Street Journal Prime Rate plus 2.75%. Additional details regarding the Term Loan are included in a related Form 8-K filed with the Securities and Exchange Commission on December 10, 2015.

Blue Dolphin Energy Company is an independent refiner and marketer of refined petroleum products in the Eagle Ford Shale. Blue Dolphin’s primary business is refinery operations at the 15,000 bpd Nixon Facility, which includes the refining of crude oil and condensate into marketable finished and intermediate products, as well as petroleum storage and terminaling. Blue Dolphin also owns and operates pipeline assets and has leasehold interests in oil and gas properties.

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