HOUSTON--(BUSINESS WIRE)--Par Petroleum Corporation (“Par Petroleum”) announced today that its subsidiary HIE Retail, LLC (“HIE Retail”) entered into a Credit Agreement on November 14, 2013, with Bank of Hawaii, as administrative agent to the lenders. Pursuant to the Credit Agreement, the lenders agreed to extend credit to HIE Retail in the form of a senior secured term loan of up to $30,000,000 and a senior secured revolving line of credit of up to $5,000,000. The lenders initially advanced $26,000,000 of the term loan and will advance an additional $4,000,000 of the term loan upon HIE Retail’s compliance with certain liquor licensing requirements, if such requirements are satisfied prior to December 31, 2014. The proceeds of the term loan were used to finance the acquisition by HIE Retail of certain retail assets, including 31 retail outlets, selling fuel products and merchandise on the islands of Oahu, Maui and Hawaii, from Hawaii Independent Energy, LLC, also a subsidiary of Par Petroleum, and for general corporate purposes.
Par Petroleum also announced that on November 15, 2013 it repaid in full and terminated all of its outstanding obligations under the $30.0 million term loan portion of its Delayed Draw Term Loan Credit Agreement with Jefferies Finance LLC, as administrative agent for the lenders. The Tranche B Loans under the Delayed Draw Term Loan Credit Agreement in the amount of approximately $18.8 million at September 30, 2013 remain outstanding.
Par Petroleum Corporation
Par Petroleum Corporation is a Houston-based company that manages and maintains interests in a variety of energy-related assets. Par is a growth company that looks for acquisitions with strong fundamentals and employees who can move the business forward.
Par's largest oil and gas asset is its investment in Piceance Energy, LLC, which owns and operates natural gas reserves located in the Piceance Basin of Colorado. Par's operating activities are concentrated in its wholly-owned subsidiaries, Texadian Energy Inc. and Hawaii Independent Energy, LLC.
Texadian Energy sources, markets, transports and distributes crude petroleum-based energy products. With significant logistics capability on key pipeline systems, a rail car fleet, and a fleet of chartered barge tows, Texadian believes it has a competitive advantage in moving crude oil efficiently from land locked locations in the Western U.S. and Canada to the refining hubs in the Midwest, the Gulf Coast, and the East Coast.
Hawaii Independent Energy's primary asset is a 94,000 bpd refinery located in Hawaii on the island of Oahu. This refinery, together with substantial storage capacity, a 27-mile pipeline system, terminals, and retail outlets, provides a substantial portion of the energy demands of Hawaii.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are risks that the Company may be unable to achieve the benefits contemplated by the acquisition of Tesoro Hawaii; risks that not all potential risks and liabilities have been identified in the Company’s due diligence of Tesoro Hawaii and its businesses; risks that Tesoro Hawaii and its businesses may not be integrated successfully or that such integration may require a disproportionate amount of management’s attention and the Company’s resources; risks that the businesses of Tesoro Hawaii may not operate profitably; risks that anticipated cost efficiencies or synergies may not be realized; and risks associated with other potential negative effects from the transaction. Although the Company believes that in making such forward-looking statements its expectations are based upon reasonable assumptions, such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. The Company cannot assure you that the assumptions upon which these statements are based will prove to have been correct. Other important risk factors that may affect the Company’s business, results of operations and financial position are discussed in its most recently filed Annual Report on Form 10-K, recent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K and other Securities and Exchange Commission filings.
