CITGO Petroleum Corporation confirmed it received $1.2 Billion in financing for its ongoing business operations. The five-year Term Loan B offering was well received by the institutional market with participation from approximately 35 financial institutions. As part of the transaction, both the $320 Million Accounts Receivable Securitization facility and the $900 Million Revolver, with maturities of May and July respectively, were retired.
“The significant interest in our debt offering reflects the underlying strength of our company – operationally, financially and in terms of our leadership,” said CITGO Executive Vice President Rick Esser, “so we were able to finalize a deal that provides great stability and security for our business.”
Since the U.S. Government imposed sanctions on Petróleos de Venezuela, S.A. (PDVSA) on Jan. 28, 2019, CITGO has lawfully operated within the restrictions of those sanctions through General License 7. As of March 14, 2019, General License 7 was replaced by General License 7A, providing an 18-month authorization that renews automatically on a monthly basis. This rolling extension allows CITGO to maintain operations in markets that are based on long-term planning and contractual commitments and is a clear indication that the U.S. Government recognizes the importance of CITGO and its contributions to the U.S. economy.
“With our rolling license extension and now our refinancing firmly in place, our employees, marketers, retailers, business partners and the financial community can be confident in their dealings with CITGO,” continued Esser. “As a company that is here today and here to stay, we will continue our efforts to strengthen our core business of refining and marketing quality products,” he concluded.