HOUSTON, May 29 /PRNewswire-FirstCall/ -- Frontier Oil Corporation
(NYSE: FTO) announced that it has entered into an amended and restated
revolving credit agreement with a group of banks led by Union Bank of
California, N.A. and BNP Paribas. Commitments under the new working capital
facility are $175 million and will increase to $250 million upon closing of
the recently announced merger with Holly Corporation, which is expected in
August. Cash advances under the revolving facility are currently limited to a
maximum of $125 million, increasing to $200 million upon closing of the
merger. The facility is secured by accounts receivable and inventory and is
scheduled to mature on June 15, 2006.
(Logo: http://www.newscom.com/cgi-bin/prnh/20010411/FTOLOGO )
The facility includes reduced interest rate spreads and letter of credit
fees. In addition to a new financial covenant package reflective of the
revised capital structure, important changes in the new agreement are the
facilitation of intra-company funds flows and the provision for upstream and
downstream guarantees.
Julie Edwards, Frontier's Chief Financial Officer, commented, "We are
pleased to have closed the new revolving credit facility in such a timely
manner. The addition of several new lenders for the planned expansion of the
facility will augment the capacity of our existing bank group. Coupled with
our healthy cash position, the new facility should provide the merged company
with more than adequate liquidity going forward. The facilitation of the
intra-company funds flows will add additional strength to our senior note
issues."
Frontier operates a 110,000 barrel-per-day refinery located in El Dorado,
Kansas, and a 46,000 barrel-per-day refinery located in Cheyenne, Wyoming, and
markets its refined products principally along the eastern slope of the Rocky
Mountains and in other neighboring plains states.
This press release includes "forward-looking statements" as defined by the
Securities and Exchange Commission. Such statements are those concerning the
contemplated transaction and strategic plans, expectations and objectives for
future operations. All statements, other than statements of historical facts,
included in this press release that address activities, events or developments
that the Company expects, believes or anticipates will or may occur in the
future are forward-looking statements. This includes completion of the Holly
merger, realization of expected synergies from the transaction, future
financial performance, future equity issuance and other matters. These
statements are based on certain assumptions made by the Company based on its
experience and perception of historical trends, current conditions, expected
future developments and other factors it believes are appropriate in the
circumstances. Such statements are subject to a number of assumptions, risks
and uncertainties, many of which are beyond the control of the Company.
Investors are cautioned that any such statements are not guarantees of future
performance and that actual results or developments may differ materially from
those projected in the forward-looking statements.
SOURCE Frontier Oil Corporation
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Related links:
http://www.frontieroil.com
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CONTACT:
Doug Aron of Frontier Oil Corporation,
+1-713-688-9600, ext. 145
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