CITGO Petroleum Corporation Completes $1.10 Billion Senior Secured Notes Offering

HOUSTON, Sept. 20, 2023 /PRNewswire/ -- CITGO Petroleum Corporation ("CITGO") con?rmed today it has completed its previously announced private o?ering of $1.10 billion aggregate principal amount of 8.375% senior secured notes due 2029 (the "notes").

The o?ering generated net proceeds of approximately $1.090 billion, after deducting the initial purchasers' discounts and estimated o?ering expenses. CITGO intends to use the net proceeds from the o?ering of the notes for general corporate purposes and to pay all fees and expenses in connection with the sale of the notes. In addition, CITGO paid a dividend to CITGO Holding, Inc. ("CITGO Holding") of approximately $1.120 billion to fund the redemption of the $1.286 billion aggregate principal amount of CITGO Holding's 9.25% senior secured notes due 2024.

About CITGO:

We own and operate three large-scale, highly complex petroleum refineries with a total rated crude oil refining capacity of approximately 807,000 barrels per day, located in Lake Charles, Louisiana, Corpus Christi, Texas and Lemont, Illinois.  Our refining operations are supported by an extensive distribution network, which provides reliable access to our refined product end-markets.  We own 30 active refined product terminals with a total storage capacity of 7.8 million barrels and have equity ownership of an additional 3.5 million barrels of refined product storage capacity through our joint ownership of an additional eight terminals, spread across 21 states.  We own or have an equity interest in four additional terminals, consisting of approximately one million barrels of refined storage capacity, which are currently inactive or only utilized to store feedstocks used in refining operations.  We also have access to more than 150 active third-party and related-party terminals through exchange, terminalling and similar arrangements.  Our retail network consists of approximately 4,200 independently owned and operated CITGO-branded retail outlets located east of the Rocky Mountains.  We and our predecessors have had a recognized brand presence in the U.S. for over 100 years.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify these statements by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "target," "will," "would," "should," the negative of these terms and similar terms and phrases. These statements relate to, among other things, expectations regarding the 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. Any forward-looking statements are not guarantees of our future performance and are subject to risks and uncertainties that could cause actual results, 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, 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 business, 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 general economic activity, developments in international and domestic petroleum markets, and refinery turnarounds and operations. We do not undertake any obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

SOURCE CITGO Petroleum Corporation