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EX-10.1 - EX-10.1 - ANDEAVOR | d77059exv10w1.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 18, 2010
Tesoro Corporation
(Exact name of registrant as specified in its charter)
Delaware | 1-3473 | 95-0862768 | ||
(State or other jurisdiction | (Commission File Number) | (IRS Employer | ||
of incorporation) | Identification No.) |
19100 Ridgewood Parkway | ||
San Antonio, Texas | 78259-1828 | |
(Address of principal executive offices) | (Zip Code) |
(210) 626-6000
(Registrants telephone number,
including area code)
(Registrants telephone number,
including area code)
Not Applicable
(Former name or former address, if
changed since last report)
(Former name or former address, if
changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instruction
A.2.):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 Entry into a Material Definitive Agreement.
On October 18, 2010, Tesoro Panama Company, S.A. (TPSA), a directly and wholly-owned subsidiary
of Tesoro Corporation (the Company), entered into a uncommitted revolving credit agreement (the
Credit Agreement) with BNP Paribas, as Administrative and Syndicating Agent for the Lenders,
together with its successors in such capacity (the Administrative Agent) and BNP Paribas
Securities Corp, as arranger. TPSA is an excluded and unrestricted subsidiary (as defined) from the
Companys Fourth Amended and Restated Credit Agreement and Tesoros outstanding Indentures. The
Credit Agreement is non-recourse to the Company, meaning that only TPSA is liable to reimburse
BNP Paribas for any borrowed amounts or interest thereon. Neither the Company nor any of its
subsidiaries, other than the Borrower and its subsidiaries (subject to certain exceptions), are
guarantors under the Credit Agreement. This summary of the material terms of the Credit Agreement
is qualified in its entirety by reference to the Credit Agreement, a copy of which is attached as
Exhibit 10.1 to this Current Report on Form 8-K and is incorporated by reference herein.
The Company formed TPSA to further utilize its pipeline and tank assets in Panama by enhancing
strategic partnerships, developing economies of scale around freight and storage opportunities,
expanding global commercial relationships and evaluating opportunities to source crude from
alternative supply markets for trade or transportation.
The Credit Agreement will provide for (a) up to $260 million in an uncommitted, senior-secured
revolving credit facility (Facility A) available for revolving loans, swing line loans, daylight
overdraft loans and the issuance on an uncommitted basis of letters of credit (LCs) and (b) up to
$150 million in an uncommitted, senior-secured facility (Facility B) available for Trade LCs and
advances. Facilities A and B are each available on an uncommitted basis subject to the
applicable facility maximum amount and collateral pool (at closing the Combined Facility Maximum
Amount was $350 million) ($245 million for Facility A and $105 million for Facility B).
The Credit Agreement includes an accordion feature which permits TPSA to increase the facilities up
to $700 million provided that the Facilities A and B maximum amounts do not exceed $550 million and
$350 million, respectively.
Facility A will be used for advances in connection with the purchase, storage and sale of Product
and for related hedging and working capital requirements related to the normal course of business.
Facility B will be used to finance TPSAs purchase of Product from suppliers through the issuance
of LCs including escalation clauses and is available for advances in connection with the
refinancing of Facility B LCs not refinanced under Facility A.
Under the Credit Agreement, each extension of credit will bear interest, at the following rates per
annum:
(i) | If such extension of credit is a Revolving Loan, the Company may select between an Eurodollar Rate plus an applicable margin (currently 2.75%), or an Alternative Base Rate (currently 4.25%). | ||
(ii) | If such extension of credit is a Letter of Credit, the applicable margin will be 1.75% for both facilities. | ||
(iii) | If such extension of credit is a Daylight Overdraft Loan or Swing Line Loan, the Alternative Base Rate plus the Applicable Margin plus 0.50% per annum. |
The Credit Agreement contains the following default financial covenants:
(i) | The leverage ratio must be less than or equal to 10:1. | ||
(ii) | The Company must maintain a Minimum Adjusted Tangible Net Worth, based on the Combined Facility Maximum Amount (currently $35 million). | ||
(iii) | The Company must maintain Minimum Adjusted Net Working Capital, based on the Combined Facility Maximum Amount (currently $35 million). | ||
(iv) | The Company must maintain inventory levels below certain thresholds depending on the Combined Facility Maximum Amount (currently 3 million barrels). |
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Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
10.1 | Uncommitted Revolving Credit Agreement dated as of October 18, 2010 among Tesoro Panama Company, S.A. as Borrower, certain lenders listed on the signature pages, as Lenders, and BNP Paribas, as Administrative Agent, Collateral Agent, Letter of Credit Issuer, Swing Line Lender and Daylight Overdraft Bank. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: October 22, 2010
TESORO CORPORATION |
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By: | /s/ G. SCOTT SPENDLOVE | |||
G. Scott Spendlove | ||||
Senior Vice President, Chief Financial Officer and Treasurer |
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Index to Exhibits
Exhibit | ||
Number | Description | |
10.1
|
Uncommitted Revolving Credit Agreement dated as of October 18, 2010 among Tesoro Panama Company, S.A. as Borrower, certain lenders listed on the signature pages, as Lenders, and BNP Paribas, as Administrative Agent, Collateral Agent, Letter of Credit Issuer, Swing Line Lender and Daylight Overdraft Bank. |
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