CITGO Corporation Debt Refinancing Strengthens Balance Sheet, Adds Flexibility

HOUSTON, June 9, 2020 /PRNewswire/ -- CITGO Petroleum Corporation (the "Company") confirmed today it has completed its previously announced refinancing transaction to pay-off the Company's existing term loan B due 2021 (the "Term Loan B"). The transaction is a private offering of $1.125 billion aggregate principal amount of senior secured notes due 2025.

Competitively priced at 7%, the transaction was significantly oversubscribed, with participation from a broad and diverse group of investors.

"Our ability to raise additional funds at attractive pricing, despite the unprecedented economic environment surrounding COVID-19 and global oil supplies, demonstrates the markets' overall confidence in CITGO," said CITGO CEO Carlos Jordá. "We believe our core strengths will allow us to continue executing financial strategies that position CITGO for a strong future."

The company executed this refinancing to enhance liquidity during a time of economic uncertainty. The additional net proceeds will provide flexibility to fund working capital and other general corporate purposes.

About CITGO Petroleum Corporation

Headquartered in Houston, Texas, CITGO Petroleum Corporation owns and operates three large-scale, highly complex refineries, with a combined crude capacity of approximately 769,000 barrels-per-day, located in Corpus Christi, Texas; Lake Charles, Louisiana; and Lemont, Illinois, has ownership/equity interest in 41 active refined product storage and transfer terminals, and has access to over 120 third-party and related party terminals through exchange, terminaling and similar arrangements. 

Forward-Looking Statements

Certain information included in this release may be deemed to be "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995.  These statements relate to, among other things, expectations regarding the proposed notes offering and the use of proceeds therefrom. These statements also relate to our industry, business strategy, goals and expectations concerning our market position and future operations.  We have used the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar terms and phrases to identify forward-looking statements, which speak only as of the date of this release.

Any forward-looking statements are not guarantees of future events and are subject to risks and uncertainties that could cause actual events, developments and business decisions to differ materially from those contemplated by these forward-looking statements.  These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical trends, current conditions (including current market conditions), expected future developments and other factors they believe to be appropriate.  Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate, and the forward-looking statements based on these assumptions could be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or could otherwise materially affect our financial condition, results of operations and cash flows.  We caution readers that these forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from the results that are projected, expressed or implied.  These risks and uncertainties include, among others, risks related to the effects of the ongoing COVID-19 pandemic, general economic activity, developments in international and domestic petroleum markets, and refinery turnarounds and operations.  Readers are cautioned not to place undue reliance on these forward-looking statements.

The forward-looking statements contained in this release are made only as of the date of this release.  We disclaim any duty to update any forward-looking statements.

SOURCE CITGO Corporation