Lehman Brothers launched syndication last Tuesday of a $345 million bank facility for Getty Petroleum Marketing. The deal comprises a four-year, $75 million revolver priced at LIBOR plus 21/2% and a six-year, $270 million "B" loan at LIBOR plus 31/4%, according to market participants.
Proceeds from the bank deal, along with $50 million in incremental equity investment from Getty's owner, will be used to back the $266 million purchase from ConocoPhillips of 308 Mobil-branded gas retail stations. The acquisition will also include contracts to supply 471 third-party stations in New Jersey and Pennsylvania. The purchase price represents 3.2 times EBITDA.
Getty, an independent marketer of petroleum products in the U.S., is an indirect wholly owned subsidiary of Russian-oil company OAO LUKOIL. A Getty spokesman referred calls to Lehman bankers who declined comment.