Hartree Partners and subsidiary Sprague Operating Resources announced the closing of a $662.5 million senior secured acquisition credit facility. This three-year facility—which has two one-year extension options—was built to support Hartree’s capital expenditures, liquidity needs, and future acquisition growth.
This deal also includes an accordion feature, enabling Hartree to increase the size of the loan to $750 million. A diverse group of nine financial institutions participated in the facility.
Hartree Partners is a leading global merchant commodities firm specializing in energy and associated industries. And it was established over 25 years ago and is jointly-owned by senior management and funds managed by Oaktree Capital Management.
Three lenders (Rabobank, Citizens Bank, and Wells Fargo Securities) served as the joint lead arrangers of the facility. Rabobank also served as the administrative agent and sole book-runner. Six other banks participated at various commitment levels.
Greenberg Trauig, LLP served as counsel to the lenders. Hogan Lovells US LLP served as counsel to the borrower.
KEY QUOTES:
“Separating this facility to finance Hartree’s existing and future fixed assets in the terminals space is a major milestone in further diversifying our bank group, loan repayment period and availability of capital. We are extremely grateful for this bank group, which has been supporting the Sprague operations for many years.”
- Bryan Keogh, chief financial officer of Hartree
”We are pleased to put this unique structure in place—with the help of our banks—to bolster our and Hartree’s strategic growth plans.”
- Todd Tinelli, chief financial officer of Sprague
“We were thrilled to partner with Hartree on this landmark transaction,”
“This facility provides Hartree and Sprague with a scalable source of funding to purchase and operate key commodity infrastructure, while also broadening Hartree’s banking partnerships. We look forward to continuing to find innovative ways to support Hartree’s future growth.”
- Sebastien Ribatto, deputy head of trade and commodity finance for Rabobank North America, and Vikran Malkani, Rabobank’s head of financial advisory and solutions for North America
