PBF Energy Inc. announced it has increased its subsidiaries’ existing revolving credit agreement from $1.375 billion to $1.575 billion in commitments. The credit agreement runs through October 2017 and is used for working capital and other general corporate purposes.
With the increase in its credit agreement, PBF also announced that its subsidiaries have terminated, effective June 30, 2013, their existing agreements with Morgan Stanley Capital Group Inc. that cover the sales of refined products from PBF’s Delaware and Paulsboro, N.J. refineries.
Tom Nimbley, PBF’s CEO, stated, “PBF’s ability to sell products directly from our East Coast refineries should enhance our profitability in the second half of 2013.”
Matthew Lucey, PBF’s CFO, added, “Today’s announcements are a direct result of the strength of our balance sheet, which we continue to focus on, and are consistent with actions we described in our public offering.”
PBF also terminated its letter of credit facility with BNP Paribas and other lenders, and will use the upsized credit agreement for letters of credit going forward.
