HOUSTON, July 16, 2019 /PRNewswire/ -- CITGO Holding, Inc. (the "Company") today announced that it intends to complete a refinancing of its existing senior secured notes (the "Proposed Refinancing Transactions"), 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 (the "Term Loan Facility").
If the Proposed Refinancing Transactions are consummated, the Company 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, the Company 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 press release 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.
About CITGO Holding, Inc.
Headquartered in Houston, Texas, CITGO Holding, Inc. ("CITGO Holding") owns and operates three large-scale, highly complex refineries, with a combined crude capacity of approximately 749,000 barrels-per-day, located in Corpus Christi, Texas; Lake Charles, La.; and Lemont, Ill., and wholly and/or jointly owns 45 active refined product terminals, nine pipelines and three lubricants blending and packaging plants. For more information, visit www.CITGO.com.
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 Refinancing Transactions and the conditional notice of redemption. 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, 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.