LOS ANGELES - Bank of America has arranged a $400 million three-year secured revolving credit facility for Clark Refining & Marketing Inc., a unit of Toronto-based Horsham Corp.
Toronto Dominion Bank and Bankers Trust were co-arrangers. The financing will be used primarily for posting letters of credit to support crude-oil purchases in connection with Clark's purchase of Chevron U.S.A. Products Co.'s Port Arthur prime fuels refinery in Texas.
The co-arrangers expect to syndicate the credit facility to other financial institutions in the near future.
Clark's deal for the 200,000-barrel-per-day refinery closed last week for about $195 million. Clark plans to operate the refinery and terminals at increased throughput levels and to improve efficiency.
Chevron retains the chemicals and lubricating oil packaging units, as well as principal responsibility for the environmental cleanup of the site.