CITGO Holding, Inc. announced that it intends to complete a refinancing of its existing senior secured notes, subject to market and other conditions, consisting of (i) the issuance and sale of $1.370 billion aggregate principal amount of the Company’s senior secured notes due 2024 (the “New Notes”) and (ii) a new four-year, $500.0 million senior secured term loan “B” facility.
If the Proposed Refinancing Transactions are consummated, CITGO Holdings intends to redeem and repay all $1.870 billion aggregate principal amount outstanding of the Company’s 10.75% senior secured notes due 2020 (the “Existing Notes”) and related accrued interest and redemption premiums.
In connection with the Proposed Refinancing Transactions, CITGO Holdings intends to deliver a conditional notice of redemption to the holders of the Existing Notes in accordance with the terms of the related indenture, which will be conditioned upon the closing of the Proposed Refinancing Transactions. There can be no assurance that the Company will, nor is the Company under any obligation to, consummate the Proposed Refinancing Transactions or issue a redemption notice with respect to the Existing Notes.
The offer and sale of the New Notes have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
This does not constitute a redemption notice with respect to the Existing Notes nor an offer to sell or the solicitation of an offer to buy the New Notes, nor will there be any sale of the New Notes in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.