Deals of the Year: Credit Suisse

In July 2008, Alon USA bought the Krotz Springs refinery from Valero Energy via an innovative financing structure put together by Credit Suisse. The $302 million loan consisted of a $50 million derivatives transaction to support a crack-spread hedge designed to protect the lenders while still allowing Alon to benefit from any favourable swings in the underlying crack-spread economics. It would have been cost prohibitive for Alon to secure corporate-level financing for the acquisition of Krotz

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