Par Pacific Announces New Intermediation Financing Agreement and Confirms Increase in ABL Commitments to up to $1.4 billion
Rhea-AI Summary
Par Pacific has announced a new crude-only intermediation financing agreement with Citigroup Energy to supply crude oil to its Hawaii refinery. The company also terminated a previous supply agreement with J. Aron & Company. Additionally, Par Pacific confirmed an increase in lender commitments under its asset-based revolving credit facility to up to $1.4 billion, based on added collateral assets in Hawaii, including refined product inventory and accounts receivable. All changes became effective on May 31, 2024.
Positive
- New crude-only intermediation financing agreement with Citigroup Energy ensures a stable crude oil supply for the Kapolei, Hawaii refinery.
- Termination of the previous supply agreement with J. Aron & Company could streamline operations.
- Increase in lender commitments under the ABL to up to $1.4 billion, enhancing liquidity.
- Addition of refined product inventory and accounts receivable as collateral strengthens the borrowing base.
Negative
- Potential risks involved with transitioning to a new intermediation agreement with Citi.
- Dependence on added collateral assets in Hawaii for increased ABL commitments could expose the company to regional risks.
News Market Reaction
On the day this news was published, PARR declined 1.73%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
HOUSTON, June 05, 2024 (GLOBE NEWSWIRE) -- Par Pacific Holdings, Inc. (NYSE: PARR) (“Par Pacific”) today announced a new, crude-only intermediation financing agreement (the “Intermediation Agreement”) between its subsidiary Par Hawaii Refining, LLC (“Par Hawaii”) and Citigroup Energy Inc. (“Citi”). Pursuant to the Intermediation Agreement, Citi will purchase and deliver crude oil to Par Hawaii for use at its refinery located in Kapolei, Hawaii. Par Pacific also announced the termination of the Second Amended and Restated Supply and Offtake Agreement between J. Aron & Company LLC and Par Hawaii.
Additionally, Par Pacific confirmed the previously announced increase in lender commitments under its existing asset-based revolving credit facility (“ABL”) to up to
The new Intermediation Agreement, the termination of Par Pacific’s previous intermediation financing facility, and the increase in lender commitments and addition of certain collateral assets to the borrowing base of the ABL each became effective on May 31, 2024.
About Par Pacific
Par Pacific Holdings, Inc. (NYSE: PARR), headquartered in Houston, Texas, is a growing energy company providing both renewable and conventional fuels to the western United States. Par Pacific owns and operates 219,000 bpd of combined refining capacity across four locations in Hawaii, the Pacific Northwest and the Rockies, and an extensive energy infrastructure network, including 13 million barrels of storage, and marine, rail, rack, and pipeline assets. In addition, Par Pacific operates the Hele retail brand in Hawaii and the “nomnom” convenience store chain in the Pacific Northwest. Par Pacific also owns
For more information contact:
Ashimi Patel
VP, Investor Relations and Sustainability
(832) 916-3355
apatel@parpacific.com
FAQ
What is the new intermediation financing agreement announced by Par Pacific?
What changes were made to Par Pacific's asset-based revolving credit facility?
When did the changes to Par Pacific's financing agreements become effective?
What was the previous supply agreement that Par Pacific terminated?
