Star Group, L.P. Announces New Credit Facility
Star Group, L.P. (NYSE:SGU), a home energy distributor and services provider, has announced a new seventh amended and restated asset-based credit facility. The Credit Facility, expiring in September 2029, allows the Company's subsidiary to borrow up to $400 million ($475 million during the heating season from December through April) on a revolving line of credit for working capital purposes. This includes the issuance of up to $25 million in letters of credit.
Additionally, the Credit Facility provides for a $210 million five-year senior secured term loan. The term loan proceeds will be used to repay existing outstanding debt of $132.1 million, with the remaining $77.9 million available for certain identified acquisitions and general corporate purposes.
Star Group, L.P. (NYSE:SGU), un distributore di energia domestica e fornitore di servizi, ha annunciato un nuovo settimo emendamento e restatement della linea di credito basata su attivi. La linea di credito, che scade a settembre 2029, consente alla sussidiaria della Compagnia di prendere in prestito fino a 400 milioni di dollari (475 milioni di dollari durante la stagione di riscaldamento da dicembre ad aprile) tramite una linea di credito rotativa per scopi di capitale circolante. Questo include l'emissione di fino a 25 milioni di dollari in lettere di credito.
Inoltre, la linea di credito prevede un prestito senior garantito a termine di 210 milioni di dollari con scadenza quinquennale. I proventi del prestito a termine verranno utilizzati per ripagare il debito esistente di 132,1 milioni di dollari, con i restanti 77,9 milioni disponibili per alcune acquisizioni identificate e per scopi aziendali generali.
Star Group, L.P. (NYSE:SGU), un distribuidor de energía para el hogar y proveedor de servicios, ha anunciado una nueva séptima enmienda y restatución de la línea de crédito basada en activos. La Línea de Crédito, que vence en septiembre de 2029, permite que la subsidiaria de la Compañía tome prestados hasta 400 millones de dólares (475 millones de dólares durante la temporada de calefacción de diciembre a abril) mediante una línea de crédito rotativa para propósitos de capital de trabajo. Esto incluye la emisión de hasta 25 millones de dólares en cartas de crédito.
Además, la Línea de Crédito prevé un préstamo a plazo senior garantizado de 210 millones de dólares. Los ingresos del préstamo a plazo se utilizarán para pagar la deuda pendiente existente de 132,1 millones de dólares, quedando los 77,9 millones restantes disponibles para ciertas adquisiciones identificadas y para fines corporativos generales.
Star Group, L.P. (NYSE:SGU), 가정 에너지 유통업체이자 서비스 제공업체가 일곱 번째 개정 및 재작성된 자산 기반 신용 시설을 발표했습니다. 이 신용 시설은 2029년 9월에 만료되며, 회사의 자회사가 운영 자본 목적으로 최대 4억 달러 (12월부터 4월까지 난방 시즌 동안은 4억 7500만 달러)를 회전 신용 한도에서 차입할 수 있습니다. 여기에는 최대 2500만 달러의 신용장 발행이 포함됩니다.
또한, 신용 시설은 2억 1천만 달러 규모의 5년 만기 담보 대출을 제공합니다. 대출금은 기존의 1억 3210만 달러의 부채를 상환하는 데 사용되며, 나머지 7790만 달러는 특정 식별된 인수 및 일반 기업 용도로 사용할 수 있습니다.
Star Group, L.P. (NYSE:SGU), un distributeur d'énergie domestique et fournisseur de services, a annoncé une nouvelle septième modification et refonte de la ligne de crédit basée sur des actifs. La ligne de crédit, qui expire en septembre 2029, permet à la filiale de l'entreprise d'emprunter jusqu'à 400 millions de dollars (475 millions de dollars pendant la saison de chauffage de décembre à avril) via une ligne de crédit revolving pourdes besoins de fonds de roulement. Cela inclut l'émission de jusqu'à 25 millions de dollars en lettres de crédit.
De plus, la ligne de crédit prévoit un prêt senior garanti à terme de 210 millions de dollars. Les produits du prêt à terme seront utilisés pour rembourser une dette existante de 132,1 millions de dollars, les 77,9 millions de dollars restants étant disponibles pour certaines acquisitions identifiées et à des fins générales de l'entreprise.
Star Group, L.P. (NYSE:SGU), ein Anbieter von Haushaltsenergie und Dienstleistungen, hat eine neue siebte Änderungs- und Neufassung der aktienbasierten Kreditfazilität angekündigt. Die Kreditfazilität, die im September 2029 ausläuft, ermöglicht es der Tochtergesellschaft des Unternehmens, bis zu 400 Millionen US-Dollar (475 Millionen US-Dollar während der Heizsaison von Dezember bis April) über eine revolvierende Kreditlinie für Betriebskapital zu leihen. Dies schließt die Emission von bis zu 25 Millionen US-Dollar an Akkreditiven ein.
Zusätzlich sieht die Kreditfazilität einen 210 Millionen US-Dollar umfassenden gesicherten langfristigen Darlehen über fünf Jahre vor. Die Erlöse aus dem Darlehen werden verwendet, um die bestehende ausstehende Schulden in Höhe von 132,1 Millionen US-Dollar zurückzuzahlen, wobei die verbleibenden 77,9 Millionen US-Dollar für bestimmte identifizierte Akquisitionen und allgemeine Unternehmenszwecke zur Verfügung stehen.
- Increased borrowing capacity up to $400 million ($475 million during heating season)
- Extended credit facility expiration to September 2029
- $210 million five-year senior secured term loan secured
- $77.9 million available for acquisitions and general corporate purposes
- Increased debt with $210 million term loan
- Repayment of $132.1 million existing outstanding debt
Insights
Star Group's new credit facility is a significant financial development. The $400 million revolving line of credit (expandable to $475 million during peak season) provides substantial liquidity for working capital needs. This flexibility is important in the volatile home energy sector, allowing Star to manage seasonal cash flow fluctuations effectively.
The $210 million term loan is strategically important. By refinancing
The extended maturity to 2029 offers long-term financial stability, reducing refinancing risks. Overall, this new facility strengthens Star's financial position, potentially leading to improved investor confidence and operational flexibility.
This credit facility announcement is particularly impactful for Star Group given its position in the home energy distribution sector. The industry is characterized by high seasonality and capital intensity, making robust financing crucial.
The increased credit line during the heating season (December-April) is a strategic move, aligning financial resources with peak demand periods. This could potentially lead to improved inventory management and customer service during critical months.
The
STAMFORD, Conn., Oct. 01, 2024 (GLOBE NEWSWIRE) -- Star Group, L.P. (the "Company" or "Star") (NYSE:SGU), a home energy distributor and services provider, today announced that it has entered into a seventh amended and restated asset-based credit facility (the "Credit Facility"), which expires in September 2029 and provides the borrower under the Credit Facility (a subsidiary of the Company) with an ability to borrow up to
About Star Group, L.P.
Star Group, L.P. is a full service provider specializing in the sale of home heating products and services to residential and commercial customers to heat their homes and buildings. The Company also sells and services heating and air conditioning equipment to its home heating oil and propane customers and, to a lesser extent, provides these offerings to customers outside of its home heating oil and propane customer base. Star also sells diesel, gasoline and home heating oil on a delivery only basis. We believe Star is the nation's largest retail distributor of home heating oil based upon sales volume. Including its propane locations, Star serves customers in the more northern and eastern states within the Northeast and Mid-Atlantic U.S. regions. Additional information is available by obtaining the Company's SEC filings at www.sec.gov and by visiting Star's website at www.stargrouplp.com, where unit holders may request a hard copy of Star’s complete audited financial statements free of charge.
Forward Looking Information
This news release includes "forward-looking statements" which represent the Company’s expectations or beliefs concerning future events that involve risks and uncertainties, including the impact of geopolitical events on wholesale product cost volatility, the price and supply of the products that we sell, our ability to purchase sufficient quantities of product to meet our customer’s needs, rapid increases in levels of inflation, the consumption patterns of our customers, our ability to obtain satisfactory gross profit margins, the effect of weather conditions on our financial performance, our ability to obtain new customers and retain existing customers, our ability to make strategic acquisitions, the impact of litigation, natural gas conversions and electrification of heating systems, pandemic and future global health pandemics, recessionary economic conditions, future union relations and the outcome of current and future union negotiations, the impact of current and future governmental regulations, including climate change, environmental, health, and safety regulations, the ability to attract and retain employees, customer credit worthiness, counterparty credit worthiness, marketing plans, cyber-attacks, global supply chain issues, labor shortages and new technology, including alternative methods for heating and cooling residences. All statements other than statements of historical facts included in this Report including, without limitation, the statements under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere herein, are forward-looking statements. Without limiting the foregoing, the words “believe,” “anticipate,” “plan,” “expect,” “seek,” “estimate,” and similar expressions are intended to identify forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to, those set forth under the heading "Risk Factors" and "Business Strategy" in our Annual Report on Form 10-K (the "Form 10-K") for the fiscal year ended September 30, 2023. Important factors that could cause actual results to differ materially from the Company’s expectations ("Cautionary Statements") are disclosed in this news release and in the Company’s Form 10-K and our Quarterly Reports on Form 10-Q. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the Cautionary Statements. Unless otherwise required by law, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this news release.
Chris Witty
Darrow Associates, Inc.
646/438-9385 or cwitty@darrowir.com
FAQ
What is the new borrowing limit for Star Group (SGU) under the amended credit facility?
When does Star Group's (SGU) new credit facility expire?
How much is Star Group's (SGU) new term loan and what will it be used for?
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