Alon USA Announces Intent To Establish New Term Loan Facility
DALLAS, Oct. 15, 2012 /PRNewswire/ — Alon USA Energy, Inc. (NYSE: ALJ) (“Alon” or “the Company”) announced today that it has engaged Credit Suisse Securities (USA) LLC and 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 $450 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 $422 million), (2) pay related transaction costs and expenses, and (3) 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 and the Krotz Springs, Louisiana refinery. The planned structure of the facility will support the Company’s previously-announced public offering of common units representing limited partnership interests of its subsidiary Alon USA Partners, LP.
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.
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 brand at these locations and at over 600 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 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.