Citgo Holding, Inc. Refinances $1.87bn Debt

(Citgo, 1.Aug.2019) — CITGO Holding, Inc., parent company of CITGO Petroleum Corporation (CPC), confirmed it has completed its previously announced refinancing transactions to redeem and pay-off $1.870 billion of its senior secured notes due in 2020.

The transactions include a private offering of $1.370 billion aggregate principal amount of senior secured notes due 2024 and a new four-year, $500 million senior secured term loan “B” facility, proceeds from both of which will be used to pay off the existing 10.75% notes.

The new notes carry a 9.25% rate, which is 150 basis points lower than the notes being refinanced.

The refinancing of the CITGO Holding 2020 notes with a 4-year term loan and 5-year notes seeks to create flexibility in the capital structure and reduce refinancing risks going forward.

“The continued interest from financial markets further demonstrates institutional investors’ confidence in the Guaido-appointed CITGO Board of Directors and its ongoing commitment to ensuring the Company’s operational and financial stability, protecting assets and enhancing corporate governance,” said a CITGO spokesperson.

Fitch Ratings recently upgraded the associated ratings of CITGO Holding, Inc. and also reaffirmed the ratings of CITGO Petroleum Corporation with a stable outlook.

“The strength of our underlying financials and operations allows us to execute a financial strategy that positions CITGO for a strong future,” a CITGO spokesperson said.


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