Alon acquires Krotz Springs refinery from Valero

摘要

Alon USA has completed the acquisition of Valero's Krotz Springs refinery for $333 million in cash, plus approximately $140 million for inventory and working capital. Alon Executive Chairman David Wiessman called the deal "another step in our business plan to methodically grow our operations and expand our refining capacity." He added that the company expects the refinery to generate strong cash flow that should repay the debt on the deal in as little as three years. The transaction was financed via a $302 million term loan, including a $50 million sub-facility to support substantial hedging for the plant, arranged by Credit Suisse. Additionally, Bank of America arranged a $400 million line of credit that can expand by $100 million for working capital needs.