Par Pacific Raises $500M via 7.375% Notes, Extends $1.8B Revolver to 2031
PARR•Par Petroleum closed a private placement of $500 million of 7.375% senior unsecured notes due 2034 and increased its asset-based revolving credit facility to $1.8 billion with a 2031 maturity. Net proceeds and ABL borrowings were used to fully repay and terminate the term loan originally due in 2030.
1. Private Placement Details
Par Petroleum, a wholly owned subsidiary, completed a private placement of $500 million aggregate principal amount of 7.375% senior unsecured notes due 2034 under Rule 144A and Regulation S, sold exclusively to qualified institutional and non-U.S. investors.
2. ABL Credit Facility Increase and Extension
The company increased lender commitments under its senior secured asset-based revolving credit facility to $1.8 billion and extended the maturity date to 2031 to strengthen liquidity and working capital flexibility.
3. Debt Repayment and Termination
Net proceeds from the new notes, combined with cash on hand and borrowings under the increased ABL facility, were applied to fully repay and terminate the existing term loan that was scheduled to mature in 2030.
4. Strategic Financial Impact
These financing actions extend the debt maturity profile, provide substantial revolving liquidity, and may reduce near-term refinancing risk and overall funding costs.
