UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
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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. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01. | Entry into a Material Definitive Agreement |
On June 1, 2023 (the “Closing Date”), Par Montana, LLC (“Par Montana”), Par Montana Holdings, LLC (“Par Montana Holdings”), and Par Rocky Mountain Midstream, LLC (“Par Rocky Mountain” and, together with Par Montana and Par Montana Holdings, the “Purchasers”), each subsidiaries of Par Pacific Holdings, Inc. (the “Company”), completed the previously announced acquisition from Exxon Mobil Corporation (“EMC”), ExxonMobil Oil Corporation (“EMOC”), and ExxonMobil Pipeline Company LLC (“EMPC” and, collectively with EMC and EMOC, the “Sellers”) of (i) the high-conversion, complex refinery located in Billings, Montana (the “Refinery”), which is capable of processing 63,000 barrels per day, and certain associated distribution and logistics assets (together with the Refinery, the “Billings Assets”), and (ii) 100% of the issued and outstanding equity interests in Exxon Billings Cogeneration, Inc. and in Yellowstone Logistics Holding Company (collectively, the “Transaction”), pursuant to that certain Equity and Asset Purchase Agreement dated as of October 20, 2022 (as amended by the Purchase Agreement Amendment (as defined below), the “Purchase Agreement”), among the Sellers, the Purchasers and, solely for certain purposes specified in the Purchase Agreement, the Company.
The purchase price for the Transaction includes a base purchase price of $310 million (including a $30 million deposit funded at signing), approximately $290 million for the estimated value of hydrocarbon inventory, and an aggregate of approximately $38 million for working capital and other purchase price adjustments at closing. The purchase price will be adjusted after closing to finalize the estimated amounts. The base purchase price was paid with cash on hand, and the hydrocarbon inventory associated with the Transaction was primarily financed by approximately $215 million borrowed pursuant to the “Billings Incremental Facility” under the Company’s Asset-Based Revolving Credit Agreement dated as of April 26, 2023 (the “ABL Credit Agreement”), with the borrowers party thereto, the lenders party thereto, as lenders, the issuing banks party thereto, and Wells Fargo Bank, National Association, as administrative agent and collateral agent for each member of the lender group. On May 30, 2023, the ABL Credit Agreement was amended (the “ABL Amendment”) by the parties thereto in order to effect the Billings Incremental Facility, adjust the borrowing base to account for the Billings Assets, and fund an escrow account to purchase a portion of the hydrocarbon inventory associated with the Transaction on the Closing Date.
On the Closing Date, the Sellers, the Purchasers and the Company entered into the First Amendment to Equity and Asset Purchase Agreement (the “Purchase Agreement Amendment”). The Purchase Agreement Amendment made certain modifications to the Purchase Agreement, including to add Par Rocky Mountain as a purchaser of certain of the Billings Assets.
The foregoing description of the Purchase Agreement Amendment does not purport to be complete and is qualified in its entirety by reference to full text of the Purchase Agreement Amendment, a copy of which is attached hereto as Exhibit 2.2 and incorporated by reference herein.
Item 2.01 | Completion of Acquisition or Disposition of Assets |
The information provided under Item 1.01 of this Current Report regarding the Transaction is incorporated by reference into this Item 2.01.
The foregoing description of the Transaction does not purport to be complete and is qualified in its entirety by reference to the full text of the Purchase Agreement and the Purchase Agreement Amendment, copies of which are attached hereto as Exhibit 2.1 and Exhibit 2.2, respectively, and incorporated by reference herein.
Item 2.03 | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant |
The information provided under Item 1.01 of this Current Report regarding the borrowings made pursuant to the Billings Incremental Facility under the ABL Credit Agreement in connection with the Transaction is incorporated by reference into this Item 2.03.
The foregoing description of the Billings Incremental Facility, the ABL Credit Agreement, and the ABL Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the ABL Credit Agreement and ABL Amendment, copies of which are attached hereto as Exhibit 10.1 and Exhibit 10.2, and incorporated by reference herein.
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Item 7.01 | Regulation FD Disclosure |
On the Closing Date, the Company issued a news release announcing the closing of the Transaction. The news release is furnished as Exhibit 99.1 to this Current Report on Form 8-K, and is incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the foregoing information, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information and Exhibits be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Forward-Looking Statements
This Current Report on Form 8-K, including Exhibit 99.1, includes certain “forward-looking statements” within the meaning of Section 27A of the Securities Act, and Section 21E of the Exchange Act, which are intended to qualify for the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements about the financial impact of the Transaction and the Company’s plans to invest in renewable fuels production and other projects to improve throughput and reliability at the Refinery are forward-looking statements. Additionally, forward looking statements are subject to certain risks, trends, and uncertainties. The Company cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should one of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of the date of this Current Report on Form 8-K. Except as required by applicable law, the Company does not intend to update or revise any forward-looking statements made herein or any other forward looking statements as a result of new information, future events or otherwise. The Company further expressly disclaims any written or oral statements made by a third party regarding the subject matter of this Current Report on Form 8-K.
Item 9.01 | Financial Statements and Exhibits |
(a) | Financial Statements of Business Acquired. |
The financial statements required by Item 9.01(a) will be filed by amendment no later than 71 calendar days after the date that this Current Report on Form 8-K was required to be filed with respect to the disclosure in Item 2.01 above.
(b) | Pro Forma Financial Information. |
The financial information required by Item 9.01(b) will be filed by amendment no later than 71 calendar days after the date that this Current Report on Form 8-K was required to be filed with respect to the disclosure in Item 2.01 above.
(c) | Shell Company Transactions. |
None.
(d) | Exhibits. |
2.1 |
2.2 |
10.1 |
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10.2 |
99.1 |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
@ | Schedules to and portions of this exhibit have been omitted pursuant to Item 601(a)(5) and (b)(2)(ii) of Regulation S-K. The Company hereby undertakes to supplementally furnish copies of any omitted schedules to and portions of this exhibit to the Securities and Exchange Commission upon request. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: June 1, 2023
PAR PACIFIC HOLDINGS, INC. | ||
By: | /s/ Jeffrey R. Hollis | |
Jeffrey R. Hollis | ||
Senior Vice President, General Counsel, and Secretary |
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Exhibit 2.2
Execution Version
FIRST AMENDMENT TO EQUITY AND ASSET PURCHASE AGREEMENT
THIS FIRST AMENDMENT TO EQUITY AND ASSET PURCHASE AGREEMENT (this Amendment) is entered into as of June 1, 2023, by and among EXXON MOBIL CORPORATION, a corporation organized under the laws of the State of New Jersey (EMC), EXXONMOBIL OIL CORPORATION, a company organized under the laws of the State of New York (EMOC), EXXONMOBIL PIPELINE COMPANY LLC, a limited liability company organized under the laws of the State of Delaware (EMPC, and collectively with EMC and EMOC, the Sellers, and each individually, a Seller), Par Montana Holdings, LLC, a limited liability company organized under the laws of the State of Delaware (the Equity Purchaser), Par Montana, LLC, a limited liability company organized under the laws of the State of Delaware (the Asset Purchaser, and collectively with the Equity Purchaser, the Purchaser Entities and each individually a Purchaser Entity), Par Rocky Mountain Midstream, LLC, a limited liability company organized under the laws of the State of Delaware, and solely for the purposes of Section 1.8 hereof, Par Pacific Holdings, Inc., a Delaware corporation (the Purchaser Parent). The Sellers and the Purchaser Entities shall each be referred to in this Amendment as a Party, and collectively as the Parties. Capitalized terms that are used in this Amendment and not otherwise defined herein shall have the respective meanings ascribed to such terms in the Original Agreement (as defined below).
W I T N E S S E T H
WHEREAS, the Sellers, the Equity Purchaser, the Asset Purchaser and, solely for the purposes of Section 8.17 and Section 16.4 of the Original Agreement, Purchaser Parent entered into that certain Equity and Asset Purchase Agreement dated as of October 20, 2022 (the Original Agreement);
WHEREAS, pursuant to the terms of the Original Agreement, the Equity Purchaser elected to acquire and purchase the Equity Interests and the Asset Purchaser elected to acquire and purchase the Assets and assume the Assumed Liabilities, in each case, on the terms and conditions set forth in the Original Agreement; and
WHEREAS, the Parties desire to amend the Original Agreement as set forth in this Amendment.
NOW, THEREFORE, in consideration of the foregoing and the mutual representations, warranties, covenants, and agreements hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:
ARTICLE 1
AMENDMENTS
1.1 Original Agreement Article I Definitions and Interpretations. Section 1.1 of the Original Agreement is amended and supplemented by inserting or amending and restating, as the case may be, in their appropriate alphabetical position, the following definitions:
Assignment and Bill of Sale means the assignment and bill of sale to be entered into as of the Closing Date, substantially in the form of Exhibit C, pursuant to which (i) Sellers shall sell, convey, transfer and assign the Assets (other than the Silvertip Pipeline System Assets or those Assets covered by any Deed) to the Asset Purchaser, (ii) the Equity Sellers shall sell, convey, transfer and assign the Equity Interests to the Equity Purchaser, (iii) Sellers shall sell, convey, transfer and assign the Silvertip Pipeline System Assets (other than those Silvertip Pipeline System Assets covered by the Silvertip Pipeline System Deed) to the Silvertip Purchaser and (iv) each such Purchaser Entity shall assume the related Assumed Liabilities from the Sellers, in each case, from and after the Closing.
Purchaser Entities means, collectively, the Asset Purchaser, the Equity Purchaser and the Silvertip Purchaser.
Silvertip Pipeline System Assets has the meaning set forth in Section 4.6.
Silvertip Pipeline System Deed means the deed and assignment to be entered into as of the Closing Date, substantially in the form of Exhibit B-3, pursuant to which EMPC will transfer, convey, and assign to the Silvertip Purchaser at the Closing (i) the Silvertip Pipeline System and the Silvertip Pipeline System Real Property, and (ii) all Easements Related thereto, except to the extent any portion of the Silvertip Pipeline System will be transferred, conveyed or assigned to the Silvertip Purchaser pursuant to the Assignment and Bill of Sale.
Silvertip Purchaser has the meaning set forth in Section 4.6.
1.2 Original Agreement Article 4 Closing. The Original Agreement is amended to add the following Section 4.6:
4.6 Closing Transfers. Pursuant to Section 2.1, Purchaser Entities have designated Par Rocky Mountain Midstream, LLC, a limited liability company organized under the laws of the State of Delaware (the Silvertip Purchaser), to purchase, acquire and accept from the applicable Sellers, all of such Sellers right, title and interest in and to the Silvertip Pipeline System and each of the Assets set forth in Section 2.1(a)(iv) through (xiii) solely to the extent related to the Silvertip Pipeline System (collectively, the Silvertip Pipeline System Assets). Without limitation of Section 2.3, the Silvertip Purchaser shall assume, and timely fulfill, perform, pay and discharge, in accordance with their terms all the Assumed Liabilities in respect of the Silvertip Pipeline System Assets. For all purposes hereof, the Silvertip Purchaser shall be deemed a Party to this Agreement and each reference in this Agreement to the (a) Asset Purchaser shall hereby include the Silvertip Purchaser solely with respect to the Silvertip Pipeline System Assets and related Assumed Liabilities, and (b) Purchaser Entities shall include the Silvertip Purchaser as a Purchaser Entity, in each case of clause (a) and (b), in respect of the rights and obligations under this Agreement. Notwithstanding anything to the contrary in this Agreement, (x) the foregoing designation of the Silvertip Purchaser for purposes of such purchase and assumption in respect of the Silvertip Pipeline System Assets and related Assumed Liabilities shall limit neither the rights of the Sellers or the Purchaser Entities under this Agreement nor the obligations of the Purchaser Entities (including the Silvertip Purchaser) or the Sellers pursuant to the terms of this Agreement and (y) the obligations of the Purchaser Parent in accordance with the Purchaser Parent Guarantee shall extend to and include the Silvertip Purchaser as a Purchaser Entity for all purposes of Sections 8.17 and 16.4 of this Agreement. At the Closing, the Silvertip Purchaser shall execute and deliver to the Sellers the Assignment and Bill of Sale and the Silvertip Pipeline System Deed.
1.3 Original Agreement Schedule 3.3. Section 4.1(e) of Schedule 3.3 to the Original Agreement is hereby amended and restated as follows:
(e) all Crude purchased by Sellers with the intent to be processed by the Refinery in the ordinary course of business (the Purchased Crude) to which the Sellers or their respective Affiliates have good and valid title as of the Effective Time; provided that any Purchased Crude to which Sellers or their respective Affiliates do not have good and valid title as of the Effective Time (the Non-Titled Purchased Crude) shall be purchased by Asset Purchaser from Sellers pursuant to the pricing and delivery terms of the Crude Supply Agreement as and when such Purchased Crude is delivered to Asset Purchaser by Sellers following the Effective Time. Notwithstanding anything in this Schedule or the Agreement to the contrary, the Non-Titled Purchased Crude shall not be included in the value of the Hydrocarbon Inventory for purposes of calculating the Purchase Price.
1.4 Entire Agreement. This Amendment and the Original Agreement (including the Schedules and Exhibits hereto and thereto), and any agreements to be entered into hereunder and thereunder, including the other Transaction Documents, represent the entire understanding and agreement among the Parties with respect to the transactions contemplated hereby and thereby and supersede all prior agreements among the Parties with respect hereto and thereto. In the event of any conflict between the terms of this Amendment and the Original Agreement (including the Schedules and Exhibits hereto and thereto) and any Transaction Document, the terms of the other Transaction Document shall govern and control.
1.5 No Amendment or Waiver. This Amendment is limited precisely as written and shall not constitute an amendment or waiver of any other term, condition or provision of the Original Agreement or any of the documents not expressly referred to herein. The Original Agreement, as amended by this Amendment, is and shall continue to be in full force and effect and is in all respects ratified and confirmed hereby, and all references to the Original Agreement in the Original Agreement or any other Transaction Document shall be deemed to refer to the Original Agreement, as amendment by this Amendment.
1.6 Counterparts. This Amendment may be executed in counterparts, each of which shall be deemed to be an original and all of which taken together shall be deemed to constitute one and the same instrument. To evidence its execution of an original counterpart of this Amendment, a Party may send a copy of its original signature on the execution page hereof to the other Parties by electronic transmission and such transmission shall constitute delivery of an executed copy of this Amendment to the receiving Party.
1.7 Incorporation. The applicable provisions of Section 1.2 (Certain Interpretations) of the Original Agreement and Article 16 of the Original Agreement, including Section 16.3 (Governing Law; Consent to Jurisdiction), are hereby incorporated by reference herein and shall apply mutatis mutandis to this Amendment.
1.8 Consent of Purchaser Parent. By its execution and delivery of this Amendment, Purchaser Parent hereby consents to all of the terms and provisions of this Amendment and ratifies and confirms that its obligation pursuant to Section 8.17 of the Purchase Agreement remains in full force and effect.
[the remainder of this page is intentionally left blank]
IN WITNESS WHEREOF, the Parties have executed this Amendment on the date hereof.
SELLERS: | ||
EXXON MOBIL CORPORATION | ||
By: |
/s/ John A. Colling | |
Name: John A. Colling | ||
Title: attorney-in-fact | ||
EXXONMOBIL OIL CORPORATION | ||
By: |
/s/ John A. Colling | |
Name: John A. Colling | ||
Title: attorney-in-fact | ||
EXXONMOBIL PIPELINE COMPANY LLC | ||
By: |
/s/ John A. Colling | |
Name: John A. Colling | ||
Title: attorney-in-fact |
[Signature Page to First Amendment to Equity and Asset Purchase Agreement]
PURCHASER ENTITIES: | ||
PAR MONTANA, LLC | ||
By: |
/s/ Shawn Flores | |
Name: Shawn Flores | ||
Title: Chief Financial Officer | ||
PAR MONTANA HOLDINGS, LLC | ||
By: |
/s/ Shawn Flores | |
Name: Shawn Flores | ||
Title: Chief Financial Officer | ||
PAR ROCKY MOUNTAIN MIDSTREAM, LLC | ||
By: |
/s/ Shawn Flores | |
Name: Shawn Flores | ||
Title: Chief Financial Officer | ||
PAR PACIFIC HOLDINGS, INC. | ||
By: |
/s/ Shawn Flores | |
Name: Shawn Flores | ||
Title: Chief Financial Officer |
[Signature Page to First Amendment to Equity and Asset Purchase Agreement]
Exhibit 10.2
Execution Version
FIRST AMENDMENT TO
ASSET-BASED REVOLVING CREDIT AGREEMENT
FIRST AMENDMENT TO ASSET-BASED REVOLVING CREDIT AGREEMENT, dated as of May 30, 2023 (this Amendment), by and among PAR PACIFIC HOLDINGS, INC., a Delaware corporation (Holdings), PAR PETROLEUM, LLC, a Delaware limited liability company (Par Borrower), PAR HAWAII, LLC, a Delaware limited liability company (Par Hawaii), HERMES CONSOLIDATED, LLC, a Delaware limited liability company (Hermes), WYOMING PIPELINE COMPANY LLC, a Wyoming limited liability company (Wyoming Pipeline), PAR MONTANA, LLC, a Delaware limited liability company (Par Montana), and PAR ROCKY MOUNTAIN MIDSTREAM, LLC, a Delaware limited liability company, (Par Rocky, and collectively, with the Par Borrower, Par Hawaii, Hermes, Wyoming Pipeline and Par Montana, the Borrowers), each of the lenders, swing line lender and issuing banks party to the Credit Agreement (as defined below) (the Lenders) and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association (Wells Fargo), as administrative agent and collateral agent for each member of the Lender Group (as defined in the Credit Agreement) (in such capacity, together with its successors and assigns in such capacity, Agent).
W I T N E S S E T H:
WHEREAS, the Borrowers, Holdings, the Lenders and the Agent are parties to that certain Asset-Based Revolving Credit Agreement, dated as of April 26, 2023 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the Credit Agreement and the Credit Agreement, as amended by this Amendment, the Amended Credit Agreement). Terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement unless otherwise defined herein;
WHEREAS, the Borrowers desire to amend the Credit Agreement on the terms set forth herein in order to, among other things, adjust the conditions precedent and other provisions related to the Billings Acquisition Increase in order to facilitate the Billings Acquisition;
WHEREAS, the Agent and the Lenders are willing to amend the Credit Agreement on the terms set forth herein;
NOW, THEREFORE, the parties hereto hereby agree as follows:
ARTICLE I
Amendments
Section 1.1 Amendments. Subject to satisfaction (or waiver) of the conditions set forth in Article II hereof, on the Amendment Effective Date (as defined below), the Credit Agreement is hereby amended as follows:
(a) The following defined terms shall be added to Section 1.1 of the Credit Agreement in alphabetical order:
Billings Acquisition Borrowing means any Borrowing made on or after the Billings Acquisition Increase Date, but no later than the Billings Acquisition Date, in order to partially fund the Billings Acquisition.
Billings Acquisition Date has the meaning specified therefor in Section 2.2(g) of this Agreement.
Billings Acquisition Escrow Account means an escrow account that is established by certain parties to the Billings Acquisition to hold the proceeds of Billings Acquisition Borrowing to be used for the Billings Acquisition, on terms reasonably acceptable to Agent.
First Amendment means the First Amendment to Asset-Based Revolving Credit Agreement, dated as of May 30, 2023, executed by Holdings, the Borrowers, the Agent, the Lenders and each other party thereto.
(b) The definition of Borrowing Base in Section 1.1 of the Credit Agreement is hereby amended by inserting the following new paragraph immediately after the last paragraph of such definition:
As of the Billings Acquisition Increase Date, the Borrowing Base shall be deemed to equal (i) the Borrowing Base in effect immediately prior to the effectiveness of the First Amendment, plus (ii) $231,601,769.76 , and the Borrowing Base shall equal such aggregate amount until the date that the Borrowing Base is otherwise determined or adjusted pursuant to this terms of this Agreement (including pursuant to Section 2.2(h)(i)).
(c) Section 2.2(b) of the Credit Agreement is hereby amended by amending and restating such Section in its entirety as follows:
(b) The execution, delivery and effectiveness of the First Amendment shall be the sole condition precedent to the Billings Acquisition Increase of the Initial Revolver Commitments and the Maximum Revolver Amount in connection thereof (the date such condition is satisfied, the Billings Acquisition Increase Date)
(d) Section 2.2 of the Credit Agreement is hereby amended by inserting the following provisions immediately after subsection (f) thereof:
(g) The Billings Acquisition Date shall occur on the date on which each of the following conditions are satisfied:
(i) The Billings Acquisition shall have been consummated in accordance with the Billings PSA without giving effect to any amendment, waiver, consent or modification that is materially adverse to the Lenders without the consent of each Lender with a Billings Acquisition Revolver Increase Commitment.
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(ii) Upon consummation of the Billings Acquisition and the payment of all consideration in respect thereof (and related fees and expenses) required to be paid on the date thereof, Excess Availability shall be at least $100,000,000, calculated on a pro forma basis after giving effect to the Billings Acquisition Increase and the Billings Acquisition Borrowing.
(iii) The Specified Representations of any acquired Subsidiary in connection with the Billings Acquisition and, to the extent Holdings, Par Montana, LLC or Par Montana Holdings, LLC under the Billings PSA has the right to terminate its obligations under the Billings PSA or the failure of such representation results in a failure of a condition of the obligations of Holdings, Par Montana, LLC or Par Montana Holdings, LLC to consummation the Billings Acquisition, any such representations in the Billings PSA, in each case, shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) on and as of the Billings Acquisition Increase Date, as though made on and as of such date (except to the extent that such representations and warranties relate solely to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) as of such earlier date).
(iv) Holdings shall have delivered to Agent an officers certificate executed by an Authorized Person of Holdings certifying as to the satisfaction of clauses (i)-(iii) of Section 2.2(g).
(v) Borrowers shall have delivered to Agent an updated Borrowing Base Report taking into account the Billings Acquisition.
(h) If the Billings Acquisition Increase occurs but the Billings Acquisition Date does not occur on or before June 5, 2023 (or such later date as may be agreed by the Agent in its sole discretion, so long as all proceeds of the Billings Acquisition Borrowing remain in the Billings Acquisition Escrow Account until the earlier of the Billings Acquisition Date and the prepayment of the Billings Acquisition Borrowing in accordance with Section 2.4(e)(iii)):
(i) the Borrowing Base shall revert to the amount thereof immediately prior to the Billings Acquisition Increase Date, and the Borrowing Base shall equal such amount until the date that the Borrowing Base is otherwise determined or adjusted pursuant to this terms of this Agreement;
(ii) the Revolving Commitments will be reduced to the amount of Revolving Commitments in effect immediately prior to the execution, delivery and effectiveness of the First Amendment, and the Borrowers shall prepay the Billings Acquisition Borrowing in accordance with Section 2.4(e)(iii);
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(iii) the Billings Acquisition Revolver Increase Commitments shall equal zero;
(iii) except with respect to Section 2.2, Section 2.4(c)(iii) and Section 2.4(e)(iii), the Billings Acquisition Increase shall be deemed to have never occurred, and for the avoidance of doubt, no increases to sublimits, baskets, thresholds or other amounts in this Agreement that are contingent upon the consummation of the Billings Acquisition Increase shall apply; and
(iv) after the prepayments required by Section 2.4(e)(iii) are made in accordance therewith and such prepaid amounts are allocated among the Lenders, the Lenders will be deemed to have made the necessary assignments (if any) among the Lenders in order to unwind the assignments made pursuant to Section 2.2(e) of the Credit Agreement.
(e) Section 2.4(c) of the Credit Agreement is hereby amended by inserting the following provision immediately after clause (ii) thereof:
(iii) If the Billings Acquisition Increase occurs but the Billings Acquisition Date does not occur on or before June 5, 2023 (or such later date as may be agreed by the Agent in its sole discretion, so long as all proceeds of the Billings Acquisition Borrowing remain in the Billings Acquisition Escrow Account), the Revolving Commitments shall be automatically and permanently reduced on June 6, 2023 (or such later date as may be agreed by the Agent in its sole discretion, so long as all proceeds of the Billings Acquisition Borrowing remain in the Billings Acquisition Escrow Account) by an amount equal to the amount of the Billings Acquisition Increase.
(f) Section 2.4(e) of the Credit Agreement is hereby amended by inserting the following provision immediately after clause (ii) thereof:
(iii) If a reduction in Revolving Commitments pursuant to Section 2.4(c)(iii) occurs, Borrowers shall prepay the Obligations by causing (unless Agent otherwise causes, in accordance with the terms of the escrow documentation for the Billings Acquisition Escrow Account) the proceeds of the Billings Acquisition Borrowing to be released from the Billings Acquisition Escrow Account to Agent on June 6, 2023 (or such later date as may be agreed by the Agent in its sole discretion, so long as all proceeds of the Billings Acquisition Borrowing remain in the Billings Acquisition Escrow Account) in an aggregate principal amount equal to the amount of the Billings Acquisition Borrowing.
(g) Section 5.15(d)(i)(A) of the Credit Agreement is hereby amended by inserting the following provision at the end thereof:
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Notwithstanding the foregoing, the Billings Acquisition Escrow Account shall not be subject to the requirements of this Section 5.15(d)(i)(A) prior to the earlier of the Billings Acquisition Date and the prepayment of the Billings Acquisition Borrowing in accordance with Section 2.4(e)(iii).
ARTICLE II
Conditions to Effectiveness
This Amendment shall become effective on the date (the Amendment Effective Date) on which the following conditions precedent are satisfied (or waived by the Agent):
(a) The Agent (or its counsel) shall have received from (i) each Lender, (ii) the Agent (iii) Holdings; and (iv) each Borrower, a counterpart of this Amendment signed on behalf of such party; and
(b) Each representation and warranty contained in Section 3.1 hereof shall be true and correct in all respects on and as of the Amendment Effective Date.
ARTICLE III
Representations and Warranties
Section 3.1 Representations and Warranties. In order to induce the Agent and the Lenders to enter into this Amendment, each of the Loan Parties and Holdings hereby represents and warrants to the Lender Group that:
(a) all representations and warranties made by Holdings, any Loan Party or any Restricted Subsidiary and contained in the Credit Agreement or in the other Loan Documents are true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) on and as of the date hereof and the Amendment Effective Date, as though made on and as of such date (except to the extent that such representations and warranties relate solely to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) as of such earlier date);
(b) no Default or Event of Default has occurred and is continuing, nor shall result from the consummation of this Amendment or the transactions contemplated hereby;
(c) since the Closing Date, there has not occurred that is continuing, to the knowledge of Holdings or any Loan Party, a Material Adverse Effect (as defined in the Billings PSA);
(d) upon the payment of all consideration (and related fees and expenses) in respect of the Billings Acquisition required to be paid on or before the consummation of the Billings Acquisition (including any amounts to be paid into the Billings Acquisition Escrow Account), Excess Availability shall be at least $100,000,000, calculated on a pro forma basis after giving effect to the Billings Acquisition Increase and the Billings Acquisition Borrowing; and
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(e) the applicable Borrowers expect to consummate the Billings Acquisition on or before June 5, 2023 in accordance with the Billings PSA without giving effect to any amendment, waiver, consent or modification that is materially adverse to the Lenders without the consent of each Lender with a Billings Acquisition Revolver Increase Commitment.
ARTICLE IV
Miscellaneous
Section 4.1 Continuing Effect; No Other Amendments or Waivers. Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders or the Agent under the Credit Agreement or any other Loan Document and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document or any other provision of the Credit Agreement or any other Loan Document, all of which are hereby ratified and affirmed in all respects and shall continue in full force and effect. Except as expressly amended by this Amendment, the provisions of the Credit Agreement and the other Loan Documents are and shall remain in full force and effect in accordance with their terms. The parties hereto acknowledge and agree that the amendment of the Credit Agreement pursuant to this Amendment and all other Loan Documents amended and/or executed and delivered in connection herewith shall not constitute a novation of the Credit Agreement and the other Loan Documents as in effect prior to the Amendment Effective Date. This Amendment shall constitute a Loan Document for all purposes of the Credit Agreement and the other Loan Documents. All references to the Credit Agreement in any document, instrument, agreement, or writing shall from after the Amendment Effective Date be deemed to refer to the Credit Agreement as amended by this Amendment, and, as used in the Credit Agreement, the terms Agreement, herein, hereafter, hereunder, hereto and words of similar import shall mean, from and after the Amendment Effective Date, the Credit Agreement as amended by this Amendment.
Section 4.2 Counterparts; Electronic Execution. This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Amendment. Delivery of an executed counterpart of this Amendment by telefacsimile or other electronic method of transmission shall be equally as effective as delivery of an original executed counterpart of this Amendment. Any party delivering an executed counterpart of this Amendment by telefacsimile or other electronic method of transmission also shall deliver an original executed counterpart of this Amendment but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment. Section 16.7 of the Credit Agreement is hereby incorporated and shall apply to this Amendment, mutatis mutandis.
Section 4.3 CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER; JUDICIAL REFERENCE PROVISION. SECTION 11 OF THE CREDIT AGREEMENT IS HEREBY INCORPORATED AND SHALL APPLY TO THIS AMENDMENT, MUTATIS MUTANDIS.
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Section 4.4 Integration. This Amendment, together with the Credit Agreement and the other Loan Documents, reflects the entire understanding of the parties with respect to the transactions contemplated hereby and shall not be contradicted or qualified by any other agreement, oral or written, before the date hereof. The foregoing to the contrary notwithstanding, all Bank Product Agreements, if any, are independent agreements governed by the written provisions of such Bank Product Agreements, which will remain in full force and effect, unaffected by any repayment, prepayments, acceleration, reduction, increase, or change in the terms of any credit extended hereunder, except as otherwise expressly provided in such Bank Product Agreement.
Section 4.5 Severability. Each provision of this Amendment shall be severable from every other provision of this Amendment for the purpose of determining the legal enforceability of any specific provision.
Section 4.6 Reaffirmation. Each Loan Party hereto expressly acknowledges the terms of this Amendment and reaffirms, as of the date hereof and on the Amendment Effective Date, that its guarantee of the Guarantied Obligations (as defined in the Guaranty and Security Agreement) and its grant of Liens on the Collateral to secure the Secured Obligations (as defined in the Guaranty and Security Agreement) pursuant to each Security Document to which it is a party, in each case, continues in full force and effect and extends to the obligations of the Loan Parties under the Loan Documents (including the Amended Credit Agreement) subject to any limitations set out in the Amended Credit Agreement and any other Loan Document applicable to that Loan Party. Holdings expressly acknowledges the terms of this Amendment and reaffirms, as of the date hereof and on the Amendment Effective Date, that its guarantee of the Guaranteed Obligations (as defined in the Holdings Guarantee) pursuant to the Holdings Guarantee continues in full force and effect and extends to the obligations of the Loan Parties under the Amended Credit Agreement subject to any limitations set out in the Amended Credit Agreement and the Holdings Guarantee. Neither the execution, delivery, performance or effectiveness of this Amendment nor the modification of the Credit Agreement effected pursuant hereto: (i) impairs the validity, effectiveness or priority of the Liens granted pursuant to any Loan Document, and such Liens continue unimpaired with the same priority to secure repayment of all Secured Obligations, whether heretofore or hereafter incurred; or (ii) requires that any new filings be made or other action be taken to perfect or to maintain the perfection of such Liens.
[Signature Pages Follow]
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered by their respective duly authorized officers as of the date first above written.
PAR PETROLEUM, LLC PAR HAWAII, LLC HERMES CONSOLIDATED, LLC WYOMING PIPELINE COMPANY LLC PAR MONTANA, LLC PAR ROCKY MOUNTAIN MIDSTREAM, LLC | ||
By: | /s/ Shawn D. Flores | |
Shawn D. Flores | ||
Chief Financial Officer | ||
PAR PACIFIC HOLDINGS, INC. | ||
By: | /s/ Shawn D. Flores | |
Shawn D. Flores | ||
Senior Vice President and Chief Financial Officer |
Signature Page to First Amendment to Asset-Based Revolving Credit Agreement
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Agent and a Lender | ||
By: | /s/ Layne Deutscher | |
Name: | Layne Deutscher | |
Title: | Director |
Signature Page to First Amendment to Asset-Based Revolving Credit Agreement
BANK OF AMERICA, N.A., as a Lender | ||
By: | /s/ Mark Porter | |
Name: | Mark Porter | |
Title: | Senior Vice President |
Signature Page to First Amendment to Asset-Based Revolving Credit Agreement
FIFTH THIRD BANK, NATIONAL ASSOCIATION, as a Lender | ||
By: | /s/ Stephanie Lis | |
Name: | Stephanie Lis | |
Title: | Vice President |
Signature Page to First Amendment to Asset-Based Revolving Credit Agreement
MUFG BANK, LTD, as a Lender | ||
By: | /s/ Todd Vaubel | |
Name: | Todd Vaubel | |
Title: | Authorized Signatory |
Signature Page to First Amendment to Asset-Based Revolving Credit Agreement
GOLDMAN SACHS BANK USA, as a Lender | ||
By: | /s/ Keisha Leday | |
Name: | Keisha Leday | |
Title: | Authorized Signatory |
Signature Page to First Amendment to Asset-Based Revolving Credit Agreement
AMERICAN SAVINGS BANK FSB, as a Lender | ||
By: | /s/ Liane Khim | |
Name: | Liane Khim | |
Title: | First Vice President |
Signature Page to First Amendment to Asset-Based Revolving Credit Agreement
Exhibit 99.1
PAR PACIFIC COMPLETES ACQUISITION OF EXXONMOBIL BILLINGS REFINERY AND RELATED UPPER ROCKIES LOGISTICS SYSTEM
HOUSTON, June 1, 2023 Par Pacific Holdings, Inc. (NYSE: PARR) (Par Pacific) today announced that it has successfully closed its previously announced acquisition of the Billings refinery and associated marketing and logistics assets (the Billings Acquisition) from ExxonMobil Corporation and two of its subsidiaries. The base purchase price of $310 million, including $30 million Par Pacific funded at signing, was paid with cash on hand, and hydrocarbon inventory associated with the Billings Acquisition was primarily financed by the companys ABL credit facility.
Going forward, the refinery and logistics business will be known as Par Montana.
We are extremely pleased to close the Billings Acquisition and welcome the Par Montana team to Par Pacific, said William Pate, Chief Executive Officer. This acquisition significantly enhances our scale and geographic diversification. We expect the transaction to be immediately accretive to our earnings and cash flow.
The Billings, MT refinery is a 63,000 barrel per day (bpd) high-conversion, complex facility that processes low-cost Western Canadian and regional Rocky Mountain crude oil. The transaction also includes a 65% interest in an adjacent cogeneration facility and an expansive PADD IV & V marketing and logistics network. The logistics assets include the wholly owned 70-mile, 55,000 bpd Silvertip Pipeline, a 40% interest in the 750-mile, 65,000 bpd Yellowstone refined products pipeline, and four wholly owned and three joint venture refined product terminals located in Montana and Washington. Total storage capacity across the refinery and logistics locations totals 4.1 million barrels. Further, Par Pacific will supply approximately 250 Exxon and Mobil branded retail locations as part of the arrangement with ExxonMobil.
The Billings Acquisition enhances the companys existing Pacific Northwest market position. Par Pacific is evaluating renewable fuels opportunities to supplement the Billings refinerys conventional fuel production and utilize its existing market position in Washington to reduce the carbon intensity of its fuel sales in accordance with the recently enacted Washington low-carbon fuel standard.
We are focused on small-scale projects to improve throughput and reliability at the Billings refinery to increase rates closer to nameplate capacity, said Will Monteleone, President. We look forward to working with our talented new team members on identifying and executing these projects.
About Par Pacific
Par Pacific Holdings, Inc. (NYSE: PARR), headquartered in Houston, Texas, owns and operates market-leading energy, infrastructure and retail businesses. Par Pacifics strategy is to acquire and develop downstream energy businesses in logistically complex, niche markets. Throughout the Pacific Northwest, the Rockies, and Hawaii, Par Pacific operates an integrated downstream network, including 218,000 bpd of combined refining capacity across four locations, related multimodal logistics systems and 121 retail
locations. Par Pacific is developing renewable fuel capabilities at its existing refineries to supplement conventional fuel production and meet the growing demand for low-carbon energy in its local communities. Par Pacific also owns 46% of Laramie Energy, LLC, a natural gas production company with operations and assets concentrated in Western Colorado. More information is available at www.parpacific.com.
Forward-Looking Statements
This news release includes certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements include, without limitation, statements about the financial impact of the Billings Acquisition and Par Pacifics plans to invest in renewable fuels production and other projects to improve throughput and reliability at the Billings refinery. There can be no assurances that Par Pacific will be successful in these efforts, which are subject to various risks and uncertainties. We cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should one of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. We do not intend to update or revise any forward-looking statements made herein or any other forward-looking statements as a result of new information, future events or otherwise. We further expressly disclaim any written or oral statements made by a third party regarding the subject matter of this news release.
Investor Contact
Ashimi Patel
Director, Investor Relations
832-916-3355
apatel@parpacific.com
Public Affairs and Media Contact
Dallas Scholes
Director, Government and Public Affairs
281-814-6159
dscholes@parpacific.com
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Document and Entity Information |
May 30, 2023 |
---|---|
Cover [Abstract] | |
Entity Address, State or Province | TX |
Amendment Flag | false |
Entity Central Index Key | 0000821483 |
Document Type | 8-K |
Document Period End Date | May 30, 2023 |
Entity Registrant Name | Par Pacific Holdings, Inc. |
Entity Incorporation State Country Code | DE |
Entity File Number | 1-36550 |
Entity Tax Identification Number | 84-1060803 |
Entity Address, Address Line One | 825 Town & Country Lane |
Entity Address, Address Line Two | Suite 1500 |
Entity Address, City or Town | Houston |
Entity Address, Postal Zip Code | 77024 |
City Area Code | (281) |
Local Phone Number | 899-4800 |
Security 12b Title | Common Stock, $0.01 par value |
Trading Symbol | PARR |
Security Exchange Name | NYSE |
Written Communications | false |
Soliciting Material | false |
Pre Commencement Tender Offer | false |
Pre Commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
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