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Citgo accepts all $51.12 million tendered 9¼% notes due 2024
By Marisa Wong
Los Angeles, Sept. 11 – Citgo Holding, Inc. announced the results of its Aug. 10 excess cash flow offer to purchase for cash an aggregate principal amount of up to $192,356,000 of its 9¼% senior secured notes due 2024.
As of the expiration of the offer at 5 p.m. ET on Sept. 8, holders had tendered $51,122,000 of the notes, according to a Monday press release.
Because the total amount tendered did not exceed the excess cash flow offer amount, the company will purchase all of the tendered notes.
Citgo will purchase the notes at par of $1,000 plus accrued interest to but excluding the settlement date.
Payment will be made on Sept. 15.
After settlement, $1,234,000,000 of the notes will remain outstanding.
The company noted before that the excess cash flow offer amount was set equal to 50% of the excess cash flow of the company and some of its subsidiaries for the excess cash flow period defined in the notes’ indenture dated Aug. 1, 2019.
TMI Trust Co. is the paying agent for the tender offer.
After the start of the offer, the company issued a conditional notice of redemption for the aggregate outstanding principal amount of notes at a purchase price of par plus accrued interest to but excluding the redemption date, Sept. 20.
The redemption is conditioned on the company or one of its subsidiaries completing by the redemption date one or more debt financings, proceeds of which would be used to fund the redemption.
In Monday’s announcement, the company said that the redemption date may be delayed until the financing condition has been met or the redemption may not occur and the redemption notice may be rescinded in the event that the financing condition has not been satisfied by the redemption date.
Issuer Citgo Holding is the direct parent of Citgo Petroleum Corp. and also a wholly owned subsidiary of PDV Holding, Inc., which is an indirect wholly owned subsidiary of Petroleos de Venezuela, SA, a Venezuelan corporation 100% owned and controlled by the government of Venezuela.
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