JPMorgan is leading a $270 million credit facility for CII Carbon to fund its acquisition of Venture Coke Co. from ConocoPhillips Co. and M.E. Zukerman Calcined Coke Corp. The credit consists of a five-year, $50 million revolver and a seven-year, $220 million term loan "B." Pricing on the revolver is LIBOR plus 2% and the pricing on the "B" is LIBOR plus 2 1/4%.
"The opportunity arose," explained Colleen Burghardt, CII's cfo, about the decision to acquire Venture. She said both the acquisition and credit facility are expected to close mid-July. CII is a privately held company, but not by a private investment fund, Burghardt said. JPMorgan has been the company's bank dating back to the early '90s.
"The goal for the company," Burghardt said, "is to get ourselves through the acquisition and then we will be the second largest calcine coke producer in the western world." Past that, she said the company wants to continue to develop and grow in any capacity it can.