Hartree Partners, Sprague Close $662.5 Million Acquisition Credit Facility
- Three-year facility supports capex, liquidity needs and future acquisition growth
- Accordion feature allows Hartree to expand its credit limit to $750 million
- Rabobank, Citizens Bank and Wells Fargo Securities acted as joint lead arrangers
NEW YORK–(BUSINESS WIRE)–Hartree Partners, LP and subsidiary Sprague Operating Resources LLC announced today the closing of a $662.5 million senior secured acquisition credit facility.
The three-year facility, which has two one-year extension options, is designed to support Hartree’s capital expenditures, liquidity needs and future acquisition growth. The facility also includes an accordion feature allowing Hartree to increase the size of the loan to $750 million. A diverse group of nine financial institutions participated in the facility.
“Separating this facility to finance Hartree’s existing and future fixed assets in the terminals space is a major milestone in further diversifying our bank group, loan repayment period and availability of capital,” said Bryan Keogh, chief financial officer of Hartree. “We are extremely grateful for this bank group, which has been supporting the Sprague operations for many years.”
Todd Tinelli, chief financial officer of Sprague said, ”we are pleased to put this unique structure in place—with the help of our banks—to bolster our and Hartree’s strategic growth plans.”
Three lenders—Rabobank, Citizens Bank and Wells Fargo Securities—served as the joint lead arrangers of the facility. Rabobank also served as the administrative agent and sole bookrunner. In addition, Six other banks participated at various commitment levels.
“We were thrilled to partner with Hartree on this landmark transaction,” said Sebastien Ribatto, deputy head of trade and commodity finance for Rabobank North America, and Vikran Malkani, Rabobank’s head of financial advisory and solutions for North America. “This facility provides Hartree and Sprague with a scalable source of funding to purchase and operate key commodity infrastructure, while also broadening Hartree’s banking partnerships. We look forward to continuing to find innovative ways to support Hartree’s future growth.”
Greenberg Trauig, LLP served as counsel to the lenders. Hogan Lovells US LLP served as counsel to the borrower.
About Hartree Partners, LP
Hartree Partners, LP is a leading global merchant commodities firm specializing in energy and associated industries. It was established more than 25 years ago and is jointly-owned by senior management and funds managed by Oaktree Capital Management, L.P.
About Rabobank
Rabobank Group is a global financial services leader providing wholesale and retail banking, leasing, and real estate services in 37 countries worldwide. Founded over a century ago, Rabobank today is one of the world’s largest banks with over $678 billion in assets. In the Americas, Rabobank Wholesale Banking North America is a premier corporate and investment bank to the food, agribusiness, commodities and energy industries. Visit www.RabobankWholesaleBankingNA.com and www.RaboAg.com.
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