CITGO completes $2.1 billion refinancing
CITGO Petroleum has completed the refinancing of its $2.1 billion debt, which will extend the maturity of said debt and secure liquidity for its further operations.
The refinancing consists of a new 3-year $750 million revolving credit facility, a 5-year $350 million term loan, a 7-year $700 million term loan and a $300 million issue of 11.5% 7-year notes. The bank facilities and the notes are secured by certain of CITGO’s assets in the United States.
The company refinanced its debt capital structure by maximizing demand for term loan indebtedness while putting in place a smaller high yield issuance.
All of the proceeds of the refinancing are being used to prepay previous debt and to fund investments in improvement projects for CITGO’s refined products, like ultra-low-sulfur diesel, so that it can comply with regulations in the US market.
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