CITGO Holding, Inc. has successfully completed the sale of $375 million in aggregate principal amount of the Company’s Senior Secured Notes due 2020. The additional notes were sold at a premium through a direct private placement with approximately 60 funds from 10 financial institutions. CITGO Holding used the proceeds from the issuance of the additional notes, as well as cash on hand, to retire the remaining balance on its Term Loan B. The financing allowed CITGO Holding to reduce debt, extend debt maturities, and reduce interest payments.
Following the successful refinancing, Fitch Ratings has upgraded its ratings on CITGO Holding debt and elevated CITGO Holding and CITGO Petroleum ratings outlook from Rating Watch Negative and assigned them a Stable Outlook. Moody’s Ratings has upgraded the corporate family ratings and the debt ratings of both CITGO Holding and CITGO Petroleum, and upgraded the ratings outlook of both from negative to stable.
“We are pleased with the confidence displayed by the capital markets in CITGO Holding and its underlying businesses, including CITGO Petroleum,” said Curtis Rowe, CITGO Assistant Vice President of Finance. “The resulting rating actions reflect our strong assets and positioning, protections which are provided to our creditors, along with our solid operational and financial performance.”
As a company, CITGO is focused on improvements that ensure its facilities operate dependably across the network. Last year, CITGO achieved a solid Refinery Utilization Index, which was above the industry average. Historically, the company’s utilization rate has ranked in the top performing quartile of U.S. refineries. Equally important, the company’s 2017 safety performance ranks as one of the best in the history of CITGO, and demonstrates the company’s commitment to the safety of its employees, contractors and the communities in which it operates.