HOUSTON - Par Pacific Holdings, Inc. (NYSE:PARR), an energy company operating in the western United States, announced plans to increase its lender commitments under an existing asset-based revolving credit facility (ABL) to up to $1.4 billion. The expansion, slated to be effective on or around May 31, 2024, is partly based on the addition of collateral assets in Hawaii, such as refined product inventory and accounts receivable.
The company also aims to refinance its current working capital financing facilities for its Hawaii operations. This includes a supply and offtake agreement and a discretionary draw facility, using a mix of funds from the upsized ABL and a new, smaller crude-only intermediation agreement.
Par Pacific anticipates that this refinancing will cut its annual working capital financing costs by about $10 million and enhance funding flexibility.
The execution of the increased lender commitments, the collateral asset inclusion to the ABL, and the new intermediation agreement are contingent upon the negotiation and finalization of definitive documentation and the fulfillment of certain standard closing conditions.
Par Pacific, headquartered in Houston, Texas, provides both renewable and conventional fuels. It operates a significant energy infrastructure network in the Pacific Northwest, the Rockies, and Hawaii.
The company's assets in Hawaii include a 94,000 barrel per day refining capacity and a logistics system that serves the major islands, along with Hele-branded retail locations. Par Pacific also owns a 46% stake in Laramie Energy, LLC, a natural gas production company based in Western Colorado.
The information disclosed is based on a press release statement from Par Pacific Holdings, Inc., and includes forward-looking statements that involve risks and uncertainties. These statements are not guarantees of future performance and are subject to a range of factors, some of which are beyond the company's control. Investors are advised that actual results may differ materially from those projected.
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