Press release from PR Newswire
CVR Energy Subsidiaries Enter Senior Secured Asset Based Revolving Credit Facility in Principal Amount of $250 Million
Monday, February 28, 2011
CVR Energy Subsidiaries Enter Senior Secured Asset Based Revolving Credit Facility in Principal Amount of $250 Million17:01 EST Monday, February 28, 2011SUGAR LAND, Texas, Feb. 28, 2011 /PRNewswire/ -- CVR Energy, Inc. (NYSE: CVI) announced today that certain of its subsidiaries led by its wholly-owned subsidiary Coffeyville Resources, LLC have entered into a senior secured asset based revolving credit facility in an aggregate principal amount of up to $250 million available through Aug. 22, 2014.(Logo: http://photos.prnewswire.com/prnh/20071203/CVRLOGO) On Feb. 22, 2011, Coffeyville Resources, LLC ("CRLLC"), Coffeyville Resources Refining & Marketing, LLC, Coffeyville Resources Nitrogen Fertilizers, LLC, Coffeyville Resources Pipeline, LLC, Coffeyville Resources Crude Transportation, LLC and Coffeyville Resources Terminal, LLC (collectively, together with CRLLC, the "Borrowers"), and certain of CRLLC's holding companies and other subsidiaries (collectively, together with the Borrowers, the "Credit Parties") entered into a credit agreement (the "ABL Credit Facility") with a group of lenders and Deutsche Bank Trust Company Americas as administrative agent and collateral agent. The ABL Credit Facility is a senior secured asset based revolving credit facility in an aggregate principal amount of up to $250 million with an incremental facility, which permits an increase in borrowings of up to $250 million in the aggregate subject to additional lender commitments and certain other conditions. The proceeds of the loans may be used for capital expenditures and working capital and general corporate purposes of CRLLC and its subsidiaries. The ABL Credit Facility provides for loans and letters of credit in an amount up to the aggregate availability under the facility, subject to meeting certain borrowing base conditions, with sub-limits of 10 percent of the total facility commitment for swingline loans and 90 percent of the total facility commitment for letters of credit. A more detailed description of the terms and conditions of the ABL Credit Facility including a copy of the agreement were furnished to the Securities and Exchange Commission today on form 8-K.At the Borrowers' option, loans under the ABL Credit Facility initially bear interest at an annual rate equal to (i) 3 percent plus LIBOR or (ii) 2 percent plus a base rate, subject to a 0.25 percent step-down based on the previous quarter's excess availability.The obligations under the ABL Credit Facility and related guarantees are secured by a first priority security interest in the Credit Parties' inventory, accounts receivable and related assets and a second priority security interest in substantially all of the Credit Parties' other assets, in each case subject to exceptions.In connection with the entering into the ABL Credit Facility, on Feb. 22, 2011, CRLLC repaid in full its obligations and terminated the commitments under its then existing credit facility.About CVR Energy, Inc. Headquartered in Sugar Land, Texas, CVR Energy, Inc.'s subsidiary and affiliated businesses include an independent refiner that operates a 115,000 barrel per day refinery in Coffeyville, Kan., and markets high value transportation fuels supplied to customers through tanker trucks and pipeline terminals; a crude oil gathering system serving Kansas, northern Oklahoma, western Missouri and southwestern Nebraska; an asphalt and refined fuels storage and terminal business in Phillipsburg, Kan.; and through a limited partnership, an ammonia and urea ammonium nitrate fertilizer business located in Coffeyville, Kan. For further information, please contact: Investor Relations: Media Relations: Stirling Pack, Jr.Steve Eames CVR Energy, Inc.CVR Energy, Inc. 281-207-3464 281-207-3550 InvestorRelations@CVREnergy.com MediaRelations@CVREnergy.comSOURCE CVR Energy, Inc.For further information: investors, Stirling Pack, Jr., +1-281-207-3464, InvestorRelations@CVREnergy.com, or media, Steve Eames, +1-281-207-3550, MediaRelations@CVREnergy.com, both of CVR Energy, Inc.