Star Group, L.P. Announces New Credit Facility
July 07 2022 - 3:30PM
Star Group, L.P. (the "Company" or "Star") (NYSE:SGU), a home
energy distributor and services provider, today announced that it
has entered into a sixth amended and restated asset-based credit
facility (the "Credit Facility"), which expires in July 2027 and
provides the borrower under the Credit Facility (a subsidiary of
the Company) with an ability to borrow up to $400 million ($550
million during the heating season from December through April each
year) on a revolving line of credit for working capital purposes,
including the issuance of up to $25 million in letters of credit.
The Credit Facility also provides for a $165 million five year
senior secured term loan; proceeds from the term loan will be used
to repay existing outstanding debt.
The bank syndicate supporting the credit
facility is comprised of ten participants acting in various
capacities, with JPMorgan Chase Bank, N.A. as Administrative Agent,
Bank of America, N.A. and Citizens Bank, N.A. as Co-Syndication
Agents, Keybank National Association, TD Bank, N.A., BMO Harris
Bank, N.A. and Wells Fargo Bank, National Association as
Co-Documentation Agents, and J.P. Morgan Chase Bank, N.A., Bank of
America, N.A. and Citizens Bank, N.A. as Joint Lead Arrangers and
Joint Book Runners.
About Star Group, L.P.Star
Group, L.P. is a full service provider specializing in the sale of
home heating products and services to residential and commercial
customers to heat their homes and buildings. The Company also sells
and services heating and air conditioning equipment to its home
heating oil and propane customers and, to a lesser extent, provides
these offerings to customers outside of its home heating oil and
propane customer base. In certain of Star's marketing areas, the
Company provides plumbing services, primarily to its home heating
oil and propane customer base. Star also sells diesel, gasoline and
home heating oil on a delivery only basis. We believe Star is the
nation's largest retail distributor of home heating oil based upon
sales volume. Including its propane locations, Star serves
customers in the more northern and eastern states within the
Northeast and Mid-Atlantic U.S. regions. Additional information is
available by obtaining the Company's SEC filings at www.sec.gov and
by visiting Star's website at www.stargrouplp.com, where unit
holders may request a hard copy of Star’s complete audited
financial statements free of charge.
Forward Looking InformationThis
news release includes "forward-looking statements" which represent
the Company’s expectations or beliefs concerning future events that
involve risks and uncertainties, including those associated with
the severity and duration of the novel coronavirus, or COVID-19,
pandemic, the pandemic’s impact on the U.S. and global economies,
the timing, scope and effectiveness of federal, state and local
governmental responses to the pandemic, the impact of geopolitical
events, such as the crisis in the Ukraine, on wholesale product
cost volatility, the effect of weather conditions on our financial
performance; the price and supply of the products that we sell; the
consumption patterns of our customers; our ability to obtain
satisfactory gross profit margins; our ability to obtain new
customers and retain existing customers; our ability to make
strategic acquisitions; the impact of litigation; our ability to
contract for our current and future supply needs; natural gas
conversions; future union relations and the outcome of current and
future union negotiations; the impact of current and future
governmental regulations, including climate change, environmental,
health and safety regulations; the ability to attract and retain
employees; customer creditworthiness; counterparty
creditworthiness; marketing plans; cyber-attacks; inflation; global
supply chain issues; labor shortages; general economic conditions
and new technology. All statements other than statements of
historical facts included in this news release are forward-looking
statements. Without limiting the foregoing, the words "believe,"
"anticipate," "plan," "expect," "seek," "estimate" and similar
expressions are intended to identify forward-looking statements.
Although the Company believes that the expectations reflected in
such forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to be correct and
actual results may differ materially from those projected as a
result of certain risks and uncertainties. These risks and
uncertainties include, but are not limited to, those set forth
under the heading "Risk Factors" and "Business Strategy" in our
Annual Report on Form 10-K (the "Form 10-K") for the fiscal year
ended September 30, 2021. Important factors that could cause actual
results to differ materially from the Company’s expectations
("Cautionary Statements") are disclosed in this news release and in
the Company’s Form 10-K and our Quarterly Reports on Form 10-Q. All
subsequent written and oral forward-looking statements attributable
to the Company or persons acting on its behalf are expressly
qualified in their entirety by the Cautionary Statements. Unless
otherwise required by law, the Company undertakes no obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise after the
date of this news release.
CONTACT: |
Star Group,
L.P. |
Chris
Witty |
Investor Relations |
Darrow Associates |
203/328-7310 |
646/438-9385 or cwitty@darrowir.com |
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