Citgo Petroleum to launch $300 million five-year term loan on Tuesday

By Sara Rosenberg

New York, May 10 - Citgo Petroleum Corp. is scheduled to hold a bank meeting on Tuesday to launch its proposed $300 million five-year term loan, according to market sources.

BNP Paribas, RBS and UBS are the lead banks on the deal, with BNP the left lead.

Price talk on the term loan is Libor plus 350 basis points with a 1.75% Libor floor and an original issue discount of 981/2, sources said.

In addition, the company is getting a new $700 million revolver, but that has already been syndicated.

Proceeds from the credit facility, along with $1.5 billion of bonds, will be used to refinance existing debt.

One condition of the deal is that the company must raise at least $1 billion between the term loan and the new bonds.

Citgo is a Houston-based refiner and marketer of transportation fuels, lubricants, petrochemicals and other industrial products.

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