Blueknight Energy Partners has closed a new four-year, $300 million senior secured revolving credit facility. The new credit facility will replace the former credit facility which was set to end in May 2022.
Chief executive officer, Andrew Woodward, said: “We are very pleased with the successful execution and outcome of our new credit facility. The extension represents another critical step forward in Blueknight’s transformation, as it strengthens our liquidity position and enhances our visibility into our cost of capital through May 2025 while maintaining financial flexibility for future growth.”
The relevant terms and agreements contained in the new credit facility are summarised below:
- Credit Facility Size: permits borrowings up to $300 million ($50 million lower) with a provision to increase total commitments up to aggregate maximum of $450.0 million.
- Interest Rate: LIBOR plus applicable margin ranging from 2.00 percent to 3.25 percent (no change); based on first quarter 2021 total leverage ratio of 2.12 times, the opening applicable margin remains at 2 percent
- Maximum Total Leverage Ratio Covenant: 4.75 times (no change)
- Minimum Interest Coverage Ratio Covenant: 2.50 times (no change)
For more information visit investor.bkep.com