Alon USA Seeking $450 Million

Announces intent to establish new term loan facility

DALLAS -- Alon USA Energy Inc. has announced that it has engaged Credit Suisse Securities (USA) LLC and Goldman Sachs Lending Partners LLC to assist it with the arrangement of a secured term loan facility in an aggregate principal amount of up to $450 million.

The company said that it intends to use the proceeds of borrowings under the facility to repay all indebtedness outstanding under its existing term loan facility (approximately $422 million), pay related transaction costs and expenses and to the extent of any remaining proceeds after the uses described above, for general corporate purposes.

It said that it expects borrowings under the facility to be secured by liens on substantially all of the company's assets, other than the assets of the company's retail subsidiaries and the Krotz Springs, La., refinery.

The planned structure of the facility will support the company's previously announced public offering of common units representing limited partnership interests of its subsidiary Alon USA Partners LP.

Alon's ability to establish the new facility and borrow thereunder will be subject to the receipt of commitments from lenders to provide the facility, the negotiation and execution of definitive loan documents, the receipt of third-party consents, the making of arrangements to retire existing indebtedness as described above and other conditions, the company said.

Alon USA Energy, with headquartered in Dallas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. The company owns four crude oil refineries in Texas, California, Louisiana and Oregon, with an aggregate crude oil throughput capacity of approximately 250,000 barrels per day. Alon is the largest 7-Eleven licensee in the United States and operates more than 300 convenience stores in Texas and New Mexico. Alon markets motor fuel products under the Alon brand at these locations and at more than 600 distributor-serviced locations.