Tesoro Enters Into New $2.0 Billion Revolving Credit Facility
October 03 2016 - 8:00AM
-
New credit facility becomes unsecured if
investment grade credit rating is achieved
-
Credit availability not subject to borrowing
base redeterminations
-
Tesoro continues on path to investment
grade
SAN ANTONIO -
October 3, 2016 - Tesoro Corporation (NYSE:TSO) today announced
that the Company has entered into a new senior secured
revolving credit agreement with a group of banks led by JPMorgan
Chase Bank. The new $2.0 billion, four-year cash flow credit
facility replaces Tesoro's previous $3.0 billion asset based credit
facility, which was scheduled to mature in November 2019. The new
facility is not subject to borrowing base redeterminations, which
might otherwise reduce credit availability.
While the new credit facility is
currently guaranteed by certain Tesoro subsidiaries and collateral,
these guarantees and collateral will be released and the facility
will become unsecured upon Tesoro achieving an investment grade
credit rating from either Moody's Investors Service or S&P
Global Ratings.
The new credit facility, which
matures in September 2020, can be expanded up to an aggregate $2.25
billion prior to Tesoro achieving an investment grade rating and
$3.0 billion upon Tesoro achieving an investment grade rating.
"This new credit facility, along
with our continued strong cash generation and capital allocation
discipline, provides us with the financial flexibility to achieve
our strategic growth objectives while optimizing our capital
structure and strengthening our credit profile," said Steven
Sterin, Executive Vice President and CFO. "We remain committed to
driving shareholder value creation by focusing on growing the
company and operating with financial discipline. We believe this
improved credit facility brings us closer to becoming investment
grade."
About Tesoro
Corporation
Tesoro Corporation, a Fortune 100 company, is an independent
refiner and marketer of petroleum products. Tesoro, through its
subsidiaries, operates seven refineries in the western United
States with a combined capacity of over 895,000 barrels per day and
ownership in a logistics business, which includes an interest in
Tesoro Logistics LP (NYSE: TLLP) and ownership of its general
partner. Tesoro's retail-marketing system includes over 2,400
retail stations under the ARCO®, Shell®, Exxon®, Mobil®, USA
Gasoline(TM), Rebel(TM) and Tesoro® brands.
This press
release contains certain statements that are "forward-looking"
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
These statements relate to our ability to obtain an investment
grade credit rating, to generate cash flow, to exercise financial
discipline, to achieve our strategic growth objectives, to optimize
our capital structure, to strengthen our credit profile and to
grow. For more information concerning factors that could affect
these statements, see the respective annual reports on Form 10-K,
quarterly reports on Form 10-Q and current reports on Form 8-K for
Tesoro Corporation, filed with the Securities and Exchange
Commission. We undertake no obligation to publicly release the
result of any revisions to any such forward-looking statements that
may be made to reflect events or circumstances that occur, or which
we become aware of, after the date hereof.
Contact:
Investors:
Sam Ramraj, Vice President, Investor Relations, (210) 626-4757
Media:
Tesoro Media Relations, media@tsocorp.com, (210) 626-7702
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Tesoro Corporation via Globenewswire
Andeavor (NYSE:ANDV)
Historical Stock Chart
From Mar 2024 to Apr 2024
Andeavor (NYSE:ANDV)
Historical Stock Chart
From Apr 2023 to Apr 2024