CVR Energy, Inc. Enters into Credit Agreement to Provide for A Term Loan Credit Facility in an Aggregate Principal Amount Up to $105,000,000
January 30, 2019 at 02:37 am IST
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On January 29, 2019, CVR Energy, Inc. entered into the Credit Agreement among the Company, Jefferies Finance LLC, as Administrative Agent, Collateral Agent and Sole Lead Arranger, and the lenders party thereto to provide for a term loan credit facility in an aggregate principal amount up to $105,000,000. The Credit Agreement matures on March 10, 2019. The term loan credit facility bears interest at the Company’s option, at for any day, the fluctuating rate per annum of interest equal to the greate of the U.S. prime lending rate as published by The Wall Street Journal (or any successor publication) in effect on such day, the federal funds rate in effect on such day plus ½ of 1.00% and LIBOR for a one-month period plus 1.00% (subject in each case to a floor of 0.0%), plus 0.50% or LIBOR, plus 1.50%. The Credit Agreement contains various covenants that may limit, among other things, the Company’s ability to incur indebtedness, make distributions or dividends, grant liens, make investments, repay or amend the terms of certain other indebtedness, merge or consolidate, sell assets, and engage in transactions with affiliates (in each case subject to certain customary exceptions).
CVR Energy, Inc. is a diversified holding company primarily engaged in the renewable fuels and petroleum refining and marketing businesses, as well as in the nitrogen fertilizer manufacturing business through its interest in its subsidiary, CVR Partners, LP (CVR Partners). The Company operates through two segments: Petroleum and Nitrogen Fertilizer. Petroleum Segment refines and markets high-value transportation fuels primarily in the form of gasoline and diesel fuels. Petroleum Segment is composed of the assets and operations of two refineries located in Coffeyville, Kansas and Wynnewood, Oklahoma and supporting logistics assets in the region. Nitrogen Fertilizer segment produces and markets nitrogen fertilizers in the form of urea and ammonium nitrate (UAN) and ammonia. The Company's Nitrogen Fertilizer Segment is composed of the assets and operations of CVR Partners, including two nitrogen fertilizer manufacturing facilities located in Coffeyville, Kansas and East Dubuque, Illinois.