Westway Group Inc announced the signing of a new three-year, $175 million senior secured revolving credit facility. The facility is being provided by a nine-bank syndicate led by JPMorgan Chase Bank NA and was arranged by JPMorgan Securities Inc. In addition to JPMorgan Chase Bank, the syndicate consists of Regions Bank, Capital One NA, Compass Bank, Rabobank Nederland, Suntrust Bank, Whitney National Bank, Societe Generale, and CoBank ACB.
The facility replaces a $100 million facility provided by ED & F Man Treasury Management PLC that had been established when the company acquired the Westway bulk liquid storage and liquid feed businesses. The new $175 million facility will be used to refinance the approximately $88 million balance under the ED & F Man credit facility. This leaves $87 million of available credit under the new facility for general corporate purposes, which could include working capital, capital expenditures, and acquisitions.
Terms of the new facility are similar to the ED & F Man facility, except for the collateral provided and an accordion feature that allows the new facility to be expanded to $200 million.