Citgo receives consents to amend 11 3/8% notes

New York, Oct. 20 - Citgo Petroleum Corp. said it received the necessary consents to amend the indenture for its $550 million 11 3/8% senior notes due 2011.

The company said it executed a supplementary indenture but the changes will only become effective when it buys the notes.

By the consent date, holders had tendered 98.15% of the notes.

The purchase price will be $1,225.84 per $1,000 principal amount, including a $30 per $1,000 consent payment that will only be paid to holders who tender by the consent deadline of 5 p.m. ET on Oct. 19.

Citgo announced the tender on Oct. 8.

It said the price to be paid would be set based on the first call date and a fixed spread of 85 basis points over the bid-side yield on the 2.625% Treasury note due Nov. 15, 2006, determined at 2 p.m. ET on Oct. 20.

The total includes a $30 per $1,000 consent payment that will only be paid to holders who tender by the consent deadline of 5 p.m. ET on Oct. 19.

Holders who tender after that date but before the expiration date of Nov. 5 will not receive the consent payment.

The consent solicitation is to remove some restrictive covenants from the note indenture.

The Houston refining and marketing company said the tender is conditional on it receiving proceeds from an offering of debt securities. It expects to pay holders who tender by the consent date promptly following satisfaction of this financing condition.

Lehman Brothers Inc. is the dealer manager and solicitation agent (call collect 212 528-7581 or 800 438-3242). D.F. King & Co. Inc. is the information agent (call collect 212 269-5550 or 800 290-6431).

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