CITGO Petroleum Corporation confirmed it has completed its previously announced private offering of $650 million aggregate principal amount of 6.375% senior secured notes due 2026. The transaction was significantly oversubscribed, with participation from a broad and diverse group of investors.
“We proactively accelerated this refinancing to take advantage of favorable market conditions,” said President and CEO Carlos Jordá, “which yielded beneficial pricing on an extended maturity. These results, combined with the excellent investor participation, prove once again that our underlying financial and operational strategies are sound and investor confidence in CITGO remains high.”
The offering generated net proceeds of approximately $642 million, after deducting the initial purchasers’ discounts and estimated offering expenses. The Company intends to use the net proceeds from the offering of the notes, together with cash on hand, to redeem all $650 million of the Company’s existing 6.25% senior secured notes due 2022 and to pay all fees and expenses in connection with the offering.