Oil pipeline and infrastructure owner Delek Logistics Partners has more than doubled the size of its revolving bank credit line to $400 million.
The increase from $175 million gives Delek Logistics almost $300 million of debt capacity as it prepares to buy some assets from Delek US Holdings, the owner of refineries in Texas and Arkansas and the parent company of Mapco Express. As of June 30, 2013, the company's outstanding bank borrowings consisted of $90 million of revolving debt and $11.5 million in letters of credit.
"We appreciate the strong support from our bank group," said Uzi Yemin, chairman and CEO of Delek Logistics' general partner. "This amendment provides additional financial flexibility to support our growth plans by increasing borrowing capacity and the allowable leverage ratio."
The bank group working with Delek Logistics includes Fifth Third Bank as the administrative agent, Bank of America and Royal Bank of Canada as co-syndication agents, and Compass Bank, Barclays Bank, PNC Bank and RBS Citizens as co-documentation agents. Those lenders also have increased the company's maximum leverage ratio and minimum allowable interest coverage ratio. For more details, click here.
Limited partner interests of Delek Logistics (Ticker: DKL) were flat in Tuesday trading, closing at $32.42. Year to date, they've climbed more than 40 percent, giving almost $780 million.