WARREN, Pa. — United Refining Co. (URC), a leading regional refiner and marketer of petroleum products, has announced the completion of a new bank financing.

On Oct. 20, 2015, URC consummated a new five-year credit facility of $475 million, consisting of a term loan of $250 million and a revolving credit facility of $225 million, pursuant to the terms of an amended, restated and consolidated revolving credit, term loan and security agreement.

The term loan and revolving credit facility are secured primarily by certain cash account, accounts receivable, inventory, the 70,000-barrel-per-day (bpd) refinery located in Warren, Pa., the Cobham Park, Pa., tank farm and the capital stock of Kiantone Pipeline Corp.

PNC Bank is acting as administrative agent and lead arranger for the new facility.

The proceeds from the revolving credit facility will be used for working capital needs and general corporate purposes.

The proceeds of the term loan were used to finance URC’s cash tender offer for any and all of its $237.5 million aggregate principal amount of outstanding 10.5% first priority senior secured notes due 2018. The term loan, which is currently bearing interest at less than 3%, will save URC approximately $17 million per year in interest expense at current rates. After giving effect to the term loan and tender, cash on hand is in excess of $148 million.

In addition to its wholesale markets, the Warren-based URC also operates 355 Kwik Fill, Red Apple and Country Fair retail gas stations and convenience stores located primarily in western New York and western Pennsylvania.