Genesis Energy, L.P. Enters into New Facility Extending Secured Credit Availability into March 2024
April 12, 2021 at 08:30 am EDT
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Genesis Energy, L.P announced that it has successfully syndicated and closed on a refinancing of its existing revolving credit facility with $950 million in new commitments from existing lenders, including a new $650 million revolving credit facility and a $300 million Term Loan A, both due March 15, 2024. Proceeds from the Term Loan A will be used to repay an equivalent amount outstanding under the existing revolving facility. The new facility is comprised of a $650 million revolving facility and a $300 million Term Loan A, the proceeds from which will be used to pay down the balance under existing revolver. The term loan will begin amortizing at the end of the fourth quarter of 2021 at $15 million per quarter through the fourth quarter of 2022, increasing to $25 million a quarter thereafter with the balance due at maturity. The relevant covenants contained in the new facility are: Maximum Consolidated Leverage Ratio: 5.85x first quarter of 2021 and second quarter of 2021; 5.75x third quarter of 2021 through first quarter of 2022; and 5.50x thereafter. Maximum Senior Secured Leverage Ratio: 2.50x. Minimum Interest Coverage Ratio: 2.50x.
Genesis Energy L.P. is a provider of integrated suite of midstream services to the Gulf of Mexico and the Gulf Coast region of the crude oil and natural gas industry, and producer of natural soda ash. The Company operates through four segments: Offshore Pipeline Transportation, Sodium and Sulfur Services, Onshore Facilities and Transportation, and Marine Transportation. Its Offshore Pipeline Transportation segment includes its offshore crude oil and natural gas pipeline transportation and handling operations in the Gulf of Mexico. Its Sodium and Sulfur Services segment includes its alkali business and its sulfur removal business. Its Onshore Facilities and Transportation segment owns and/or leases its range of onshore crude oil and refined products infrastructure, including pipelines, trucks, terminals, and rail unloading facilities. The Companyâs Marine Transportation segment is a provider of transportation services by tank barge primarily for intermediate refined petroleum products.