Alon USA Announces Intent to Establish New Term Loan Facility
DALLAS, March 15, 2012 /PRNewswire/ — Alon USA Energy, Inc. (NYSE: ALJ) (“Alon” or “the Company”) announced today that it has engaged Goldman Sachs Lending Partners LLC to assist it with the arrangement of a secured term loan facility in an aggregate principal amount of up to $700 million. The Company intends to use the proceeds of borrowings under the facility to (1) repay all indebtedness outstanding under its existing term loan facility (approximately $425 million), (2) retire all of the indebtedness represented by the outstanding 13 1/2% senior secured notes due 2014 of its Alon Refining Krotz Springs, Inc. subsidiary (approximately $216.5 million), (3) pay related transaction costs and expenses and debt retirement premiums, and (4) to the extent of any remaining proceeds after the uses described above, for general corporate purposes. Borrowings under the facility are expected to be secured by liens on substantially all of the Company’s assets, other than the assets of the Company’s retail subsidiaries.
Alon’s ability to establish the new facility and borrow thereunder will be subject to the receipt of commitments from lenders to provide the facility, the negotiation and execution of definitive loan documents, the receipt of third-party consents, the making of arrangements to retire existing indebtedness as described above, and other conditions.
Separately, Alon Refining Krotz Springs, Inc. announced today that it has commenced a cash tender offer and consent solicitation for any and all of its outstanding 13 1/2% senior secured notes due 2014 (the “ARKS Notes”).
This press release is for information purposes only and is not an offer to purchase, a solicitation of an offer to purchase or a solicitation of a consent with respect to any of the ARKS Notes. The tender offer and consent solicitation are being made pursuant to the tender offer and consent solicitation documents, including the offer to purchase and consent solicitation statement that ARKS is distributing to holders of the ARKS Notes. The tender offer and consent solicitation are not being made to holders of ARKS Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction.
Alon USA Energy, Inc., headquartered in Dallas, Texas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. The Company owns four crude oil refineries in Texas, California, Louisiana and Oregon, with an aggregate crude oil throughput capacity of approximately 250,000 barrels per day. Alon is a leading producer of asphalt, which it markets through its asphalt terminals predominately in the Western United States. Alon is the largest 7-Eleven licensee in the United States and operates more than 300 convenience stores in Texas and New Mexico. Alon markets motor fuel products under the Alon and FINA brands at these locations and at approximately 610 distributor-serviced locations.
Any statements in this press release that are not statements of historical fact are forward-looking statements. Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. In addition, factors affecting these expectations involve numerous risks and uncertainties, many of which are beyond our control, including changes in general economic conditions and capital markets or in our financial conditions, results of operations or cash flows, which could result in our expectations not being realized. Additional information regarding these and other risks is contained in our filings with the Securities and Exchange Commission.
Contacts: Amir Barash, Vice President - IR Alon USA Energy, Inc. 972-367-3808 Investors: Jack Lascar/Sheila Stuewe DRG&L / 713-529-6600 Media: Blake Lewis Lewis Public Relations 214-635-3020 Ruth Sheetrit SMG Public Relations 011-972-547-555551
SOURCE Alon USA Energy, Inc.