Par Petroleum Forms Subsidiary to Operate Acquired Tesoro Sites

HONOLULU -- Par Petroleum Corp. formed a new subsidiary, HIE Retail LLC, to own and operate the 31 convenience stores and gas stations it purchased from Tesoro Corp. in September.

According to a Honolulu Star Advertiser report, HIE Retail secured a $30-million loan from Bank of Hawaii to purchase the sites from fellow Par Petroleum subsidiary Hawaiian Independent Energy, and will repay the loan over seven years. It also obtained a line of credit of up to $5 million from the same bank, Par Petroleum stated.

The credit agreement closed on Nov. 14. Par Petroleum repaid a $30-million term loan it previously received under a credit agreement with Jefferies Finance LLC.

Par Petroleum paid $464 million for Tesoro's inventory of crude oil and refined products, and $75 million for its refining, distribution and retail operations in Hawaii, for a total of $539 million.