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| GEL > SEC Filings for GEL > Form 8-K on 31-Jul-2012 | All Recent SEC Filings |
31-Jul-2012
Entry into a Material Definitive Agreement, Termination of a Material Definitiv
On July 25, 2012, Genesis Energy L.P. (the "Company" or "we") entered in a Third Amended and Restated Credit Agreement (the "New Credit Agreement") among the Company, as borrower, Wells Fargo Bank, National Association, as administrative agent (the "Administrative Agent"), Bank of America N.A. and Bank of Montreal as co-syndication agents, U.S. Bank National Association as documentation agent, and each of the other lenders party thereto. The New Credit Agreement replaces the Second Amended and Restated Credit Agreement, dated as of June 29, 2010 (as amended, the "Old Credit Agreement"), among the Company, as borrower, the Administrative Agent and the other lenders party thereto.
The New Credit Agreement, which matures on July 25, 2017, provides for a $1
billion senior secured revolving credit facility, with the ability to increase
the aggregate size of the facility up to $1.3 billion subject to lender consent
and certain other customary conditions. The inventory financing sublimit
tranche, which we may use to finance the purchase and sale of certain petroleum
products subject to sales contracts or hedging agreements and related storage
and transportation costs, was increased from $125 million to $150 million. All
borrowings under the New Credit Agreement bear interest, at our option, either
at an alternate base rate or a eurodollar rate. The alternate base rate is equal
to the sum of (a) the greatest of (i) the prime rate established by the
Administrative Agent, (ii) the federal funds effective rate plus 1/2 of 1% and
(iii) the LIBOR rate for a one-month maturity plus 1% and (b) the applicable
margin. The eurodollar rate is equal to the sum of (a) the LIBOR rate for the
applicable interest period multiplied by the statutory reserve rate and (b) the
applicable margin. The applicable margin varies from .75% to 1.75% for alternate
base rate borrowings and from 1.75% to 2.75% for eurodollar rate borrowings,
depending on our leverage ratio. We are also required to pay a commitment fee of
that varies from .375% to .500% per annum, depending on our leverage ratio, on
the unused committed amount.
The New Credit Agreement contains customary affirmative and negative covenants and events of default similar to those in our Old Credit Agreement. In particular, covenants in the New Credit Agreement require us to operate within certain financial metrics, including a maximum leverage ratio, a maximum senior secured leverage ratio, and a minimum interest coverage ratio. The New Credit Agreement is secured by a guarantee from all of our restricted subsidiaries (as defined in the New Credit Agreement) and by liens on a substantial portion of our assets. Upon an event of default, the Administrative Agent, at the request of lenders holding greater than 50% of the combined revolving credit exposure and unused committed amount under the New Credit Agreement, may accelerate the amounts due under the New Credit Agreement.
The foregoing summary is qualified in its entirety by reference to the New Credit Agreement, which is attached as Exhibit 10.1. The representations and warranties of the Company in the New Credit Agreement were made only for purposes of that agreement and as of specific dates and were solely for the benefit of the lenders party thereto. The New Credit Agreement is a contractual document that establishes and governs the legal relations among the parties thereto and is not intended to be a source of factual, business, or operational information about the Company and its subsidiaries. The representations and warranties made by the Company in the New Credit Agreement may be subject to standards of materiality applicable to the contracting parties that differ from those applicable to investors. Accordingly, investors and security holders should not rely on such representations and warranties as characterizations of the actual state of facts or circumstances.
Certain of the lenders under the New Credit Agreement and their affiliates have provided and may continue to provide investment banking, commercial banking, financial services, or other services to the Company and its affiliates. They have received, and may in the future receive, customary fees and commissions for their services.
In connection with our entry into the New Credit Agreement, we terminated the Old Credit Agreement. Proceeds from the New Credit Agreement were used to repay in full all amounts outstanding under the Old Credit Agreement.
The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.
A copy of our July 25, 2012 press release announcing the New Credit Agreement is attached as Exhibit 99.1.
(d) Exhibits
Exhibit No. Description
10.1 Third Amended and Restated Credit Agreement, dated as of July 25,
2012, among Genesis Energy, L.P. as borrower, Wells Fargo Bank,
National Association, as administrative agent, Bank of America,
N.A. and Bank of Montreal as co-syndication agents, U.S. Bank
National Association as documentation agent, and the lenders
party thereto.
99.1 Press release dated July 25, 2012 announcing the New Credit
Agreement.
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