News Column

CITGO Refinancing Significantly Strengthens Company Operations

August 22, 2014

By a News Reporter-Staff News Editor at Energy Weekly News -- CITGO Petroleum Corporation has successfully completed a refinancing of its debt under highly favorable conditions that have enabled the company to reduce interest rate payments and extend its debt maturities to 2019-2022, CITGO President and CEO Nelson Martinez announced.

"The culmination of this process was possible through a very large team effort and the results speak for themselves," Martinez said. "CITGO is now in a much stronger position to continue to move forward for the benefit of our customers and business partners, our employees and our shareholder," he added.

The refinancing involved a $900 million Senior Secured Revolving Line of Credit maturing in 2019, a $650 million Senior Secured Term Loan Facility maturing in 2021, and $650 million in Senior Secured Notes maturing in 2022.

Under the newly negotiated terms, CITGO will be able to reduce its interest expense by roughly $20 million per year. The company also negotiated improved flexibility in its debt covenants to allow additional financial and operational strength, while still maintaining its existing credit ratings.

As a result of CITGO's strong performance and financial strength, the company's debt offerings were very well received by the market with strong participation by a large number of institutions, resulting in a significant oversubscription.

CITGO, based in Houston, is a refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals and other industrial products. The company is owned by PDV America, Inc., an indirect wholly owned subsidiary of Petroleos de Venezuela, S.A., the national oil company of the Bolivarian Republic of Venezuela. For more information visit

Keywords for this news article include: Citgo, Energy Companies.

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Energy Weekly News

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters