We advised an ad hoc group of lenders on the financing

Davis Polk advised an ad hoc group of term lenders holding more than 70% of the outstanding principal amount of Limetree Bay Terminals LLC’s (“LBT”) $440 million senior secured term loan facility due 2024 in connection with an incremental financing transaction. As part of the transaction, (i) the ad hoc group provided $30 million of term loans to LBT as a new tranche of the existing term loan facility, pari passu with the senior secured term loan, and (ii) AMP Capital Investors S.A.R.L. and affiliates (“AMP Capital”), the holder of mezzanine debt at parent company Limetree Bay Terminal Holdings II (“Holdings”) provided an incremental $25 million under its existing Holdings term loan facility. The incremental financing will support the LBT’s efforts to reposition its business following the suspension of operations of Limetree Bay Refining, LLC (“LBR”), which was LBT’s largest customer until June 2021, when LBR filed for chapter 11 protection. Davis Polk also advised the ad hoc group in connection with a short-term bridge facility in July 2021, a $100 million incremental LBT-guaranteed Holdings term loan facility provided by AMP Capital in August 2021, and LBR’s chapter 11 cases. 

Limetree Bay Terminals is a world-class energy logistics hub centrally located in the Caribbean facilitating the storage, segregation, blending and global movement of crude oils, fuel oils, bunker, gasolines, diesel, jet fuel and liquid petroleum gases. Customers include integrated global oil majors, refiners, global trading houses and the co-located refinery. The facility consists of 167 tanks, with a capacity of approximately 34 million barrels, and deep-water access to 11 docks including an offshore single point mooring (SPM) buoy capable of loading and discharging vessels up to VLCC size.

The Davis Polk restructuring team included partner Damian S. Schaible and associates Jonah A. Peppiatt and Paavani Garg. The finance team included counsel Christian Fischer and associate Timothy H. Oyen. The corporate team included partner Stephen Salmon. Partner Lucy W. Farr and associate Ben Levenback provided tax advice. Members of the Davis Polk team are based in the New York and Northern California offices.