What is the size and maturity of the new HF Sinclair credit facility?

The new Senior Unsecured Multi-Year Revolving Credit Agreement has a maximum commitment of $2 billion, with an accordion feature allowing increases to up to $2.75 billion in aggregate principal. The initial maturity date is April 3, 2030, and the term may be extended from time to time in increments of up to one year, subject to the agreement's terms.

How is interest priced under the new credit agreement?

At the Company's option, borrowings bear interest at either a base rate (the greatest of the prime rate, the Federal Funds Effective Rate plus 1/2 of 1%, or one-month Spread Adjusted Term SOFR plus 1%) plus a margin of 0.125% to 1.000%, or Spread Adjusted Term SOFR for the applicable interest period plus a margin of 1.125% to 2.000%. The commitment fee on unused amounts ranges from 0.125% to 0.325%. The margin and fee depend on the Company's credit ratings from Moody's, Fitch and S&P.

Which existing credit facilities were terminated, and why?

The Company terminated its April 27, 2022 revolving credit agreement with MUFG Bank, LTD, which provided up to $1.65 billion and was set to mature April 30, 2026. It also caused the termination of Holly Energy Partners' Third Amended and Restated Credit Agreement, which provided up to $1.2 billion and was set to mature July 27, 2025. The filing states these terminations were a condition to entering the new Credit Agreement.

Did the Company incur any costs to terminate the prior facilities?

The filing states that the Company did not pay any prepayment penalties in connection with the termination of the MUFG-agented facility, and that neither the Company nor HEP paid any prepayment penalties in connection with the termination of the HEP facility or the parent guaranty.

How did the release of the parent guaranty affect HF Sinclair?

On April 3, 2025, the Company was released from its obligations under the Parent Guaranty Agreement dated December 1, 2023, under which it guaranteed Holly Energy Partners' obligations to Wells Fargo as administrative agent, and that guaranty was terminated. This removes the Company's guarantee of HEP's former credit facility, which was being terminated at the same time.

DINO 8-K: Material Agreements & Financial Events

01—Abstract

Summary

Summary of the 8-K filed April 3, 2025. Cited figures are marked; the original filing is the authoritative source.

On April 3, 2025, HF Sinclair Corporation entered into a Senior Unsecured Multi-Year Revolving Credit Agreement with Wells Fargo Bank, National Association, as administrative agent, and a syndicate of lenders.

The facility carries a maximum commitment of $2 billion^a, with an accordion feature permitting increases to an aggregate principal amount of up to $2.75 billion. The initial maturity date is April 3, 2030, and the Company may extend the term in increments of up to one year, subject to the terms of the agreement. Borrowings bear interest, at the Company's option, either at a base rate (based on the prime rate, the Federal Funds Effective Rate plus 1/2 of 1%, or one-month Spread Adjusted Term SOFR plus 1%, plus an applicable margin of 0.125% to 1.000%) or at Spread Adjusted Term SOFR for the applicable interest period plus an applicable margin of 1.125% to 2.000%.

A commitment fee of 0.125% to 0.325% applies to the unused portion of the commitments. Margins and fees are based on the Company's credit ratings from Moody's, Fitch and S&P. As a condition to entering the new facility, the Company terminated its Senior Unsecured Multi-Year Revolving Credit Agreement dated April 27, 2022 with MUFG Bank, LTD, which had a maximum availability of $1.65 billion^b and was scheduled to mature April 30, 2026.

The Company also caused the termination of the Third Amended and Restated Credit Agreement of its subsidiary Holly Energy Partners, L.P. (HEP), which had $1.2 billion^c of availability and was scheduled to mature July 27, 2025, and was released from its parent guaranty of that HEP facility. The filing states that no prepayment penalties were paid in connection with these terminations.

02—Key points

Key Highlights

Entered a $2 billion senior unsecured multi-year revolving credit agreement with Wells Fargo Bank, National Association, as administrative agent, dated April 3, 2025.
Accordion feature allows commitments to be increased to an aggregate principal amount of up to $2.75 billion.
Initial maturity date of April 3, 2030, with an extension feature allowing the term to be extended in increments of up to one year.
Pricing ranges from SOFR plus 1.125% to 2.000% or a base rate plus 0.125% to 1.000%, with a commitment fee of 0.125% to 0.325% on unused amounts, tied to credit ratings.
Terminated the $1.65 billion MUFG-agented revolving credit agreement dated April 27, 2022, which was scheduled to mature April 30, 2026, as a condition to the new facility.
Holly Energy Partners' $1.2 billion Third Amended and Restated Credit Agreement was terminated, and the Company was released from its parent guaranty of that facility.
The filing states that no prepayment penalties were paid in connection with either termination.

03—Questions

Frequently Asked Questions

What is the size and maturity of the new HF Sinclair credit facility?
The new Senior Unsecured Multi-Year Revolving Credit Agreement has a maximum commitment of $2 billion, with an accordion feature allowing increases to up to $2.75 billion in aggregate principal. The initial maturity date is April 3, 2030, and the term may be extended from time to time in increments of up to one year, subject to the agreement's terms.
How is interest priced under the new credit agreement?
At the Company's option, borrowings bear interest at either a base rate (the greatest of the prime rate, the Federal Funds Effective Rate plus 1/2 of 1%, or one-month Spread Adjusted Term SOFR plus 1%) plus a margin of 0.125% to 1.000%, or Spread Adjusted Term SOFR for the applicable interest period plus a margin of 1.125% to 2.000%. The commitment fee on unused amounts ranges from 0.125% to 0.325%. The margin and fee depend on the Company's credit ratings from Moody's, Fitch and S&P.
Which existing credit facilities were terminated, and why?
The Company terminated its April 27, 2022 revolving credit agreement with MUFG Bank, LTD, which provided up to $1.65 billion and was set to mature April 30, 2026. It also caused the termination of Holly Energy Partners' Third Amended and Restated Credit Agreement, which provided up to $1.2 billion and was set to mature July 27, 2025. The filing states these terminations were a condition to entering the new Credit Agreement.
Did the Company incur any costs to terminate the prior facilities?
The filing states that the Company did not pay any prepayment penalties in connection with the termination of the MUFG-agented facility, and that neither the Company nor HEP paid any prepayment penalties in connection with the termination of the HEP facility or the parent guaranty.
How did the release of the parent guaranty affect HF Sinclair?
On April 3, 2025, the Company was released from its obligations under the Parent Guaranty Agreement dated December 1, 2023, under which it guaranteed Holly Energy Partners' obligations to Wells Fargo as administrative agent, and that guaranty was terminated. This removes the Company's guarantee of HEP's former credit facility, which was being terminated at the same time.

04—Continue

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