- The purchase price for the acquisition was funded with a combination of cash and additional borrowings under an amendment to the Company's existing delayed draw term loan facility referred to as the Tranche B Loan.
Par Petroleum Corporation announced that it has acquired SEACOR Energy, Inc. ('SEI'), an indirect wholly-owned subsidiary of SEACOR Holdings Inc., for a cash purchase price of approximately $14.0 million plus estimated net working capital of approximately $4.0 million at closing. SEI is a transportation, distribution and trading company that is focused in the crude oil arena. Following the acquisition, SEI, which is headquartered in Houston, Texas, was renamed Texadian Energy, Inc. ('Texadian').
The purchase price for the acquisition was funded with a combination of cash and additional borrowings under an amendment to the Company's existing delayed draw term loan facility referred to as the Tranche B Loan. The lenders under the Company's existing delayed draw term loan are also lenders under the Tranche B Loan. The total commitment of $35 million was drawn at closing, and the Tranche B Loan bears interest at 9.75% and matures on July 1, 2013. The obligations under the Tranche B Loan are secured by a lien on substantially all of the assets of the Company and its subsidiaries, including Texadian, but excluding the Company's equity interests in Piceance Energy, LLC. In addition to funding a portion of the purchase price, the Tranche B Loan will provide cash collateral for a new $30 million letter of credit facility with Compass Bank that will support Texadian's crude oil operations.
The fairness, from a financial point of view, of the consideration to be paid by the Company in the acquisition and the pricing of the Tranche B Loan, was opined upon for independent members of the Board of Directors of the Company by its independent financial advisor, Stout Risius Ross, Inc.
'The addition of Texadian's transportation and trading business is a significant first step in the growth and expansion of our business plan,' said John T. Young, Jr., the Company's Chief Executive Officer. 'We are excited about the addition of the Texadian team and believe that this transaction will be immediately accretive to earnings and cash flow. We expect that the acquisition will pay for itself within two years.'
Peter Coxon, President of Texadian added, 'We are excited about the opportunity to continue to expand and grow our business as part of the Par Petroleum family. We see Par as an excellent, tax efficient growth vehicle for our business.'
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