NuStar Energy LP strengthened its near-term liquidity on April 20 with a new multimillion-dollar investment from Los Angeles-based Oaktree Capital Management LP.

In a company release, the San Antonio-based midstream operator said it had entered into a $750 million unsecured term loan agreement with funds managed by Oaktree. The three-year, 12% facility provides that NuStar will draw $500 million at closing and may elect to draw an additional $250 million under the facility during the first year.

NuStar Energy plans to use proceeds from the loan to pay down its revolver and address near-term debt maturities, said Brad Barron, the company’s president and CEO.

“We are pleased to partner with Oaktree for a facility that provides important financial flexibility to address current market challenges,” Barron said in a statement.

In addition to paying down its revolving credit agreement, Baron noted the company had also slashed its capex for the year.

NuStar now plans to spend between $165 million and $195 million of strategic capital in 2020, which is a reduction of over $145 million, or about 45%, from previously forecasted spending plans. The reduction also represents a roughly 60% drop from its 2019 strategic capital spending, according to a company release.

“We have also identified a significant amount of additional potential reductions that we are prepared to make to scale back spending in 2021, as conditions warrant,” Barron said. Potential reductions could range between $20 million and $30 million for full-year 2020.

“It has been a busy few weeks for NuStar, as it has been for so many, across the country and around the globe. But I am proud to report that our employees are continuing to work hard to ensure that NuStar continues to provide the critical midstream services needed to support our nation’s vital energy infrastructure in the near- and long-term,” Barron added in his statement.

With about 10,000 miles of pipeline and 74 terminal and storage facilities, NuStar is one of the largest independent liquids terminal and pipeline operators in the U.S., the company release said. NuStar also has operations in Canada and Mexico.

Intrepid Partners LLC served as exclusive financial adviser to NuStar in connection with the loan transaction. A Houston-based team from global law firm Sidley Austin LLP provided legal advice to Nustar as the company’s exclusive legal adviser. Partners Daniel Allison and George Vlahakos co-led the Sidley team.

Kirkland and Ellis was exclusive legal adviser to Oaktree for the transaction.