Citgo talks $1.37 billion five-year notes to yield in 9½% area; books close Wednesday

By Paul A. Harris

Portland, Ore., July 23 – Citgo Holding, Inc. talked a $1.37 billion offering of five-year senior secured notes (Caa1/B/B+) to yield in the 9½% area, according to market sources.

Official talk comes on top of earlier guidance.

Books close at 10 a.m. ET on Wednesday.

Jefferies LLC and Houlihan Lokey are the joint bookrunners.

The notes come with two years of call protection.

The Houston-based refiner plans to use the proceeds, along with proceeds from a $500 million term loan and cash on hand, to pay off its $1.87 billion 10¾% senior secured notes due 2020 that are outstanding.

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