Citgo repays term loan B via sale of new notes

New York, March 15 – Citgo Holding, Inc. said it repaid the remaining balance on its term loan B using proceeds from the sale of $375 million of senior secured notes due 2020.

Cash on hand was also applied to the refinancing of the bank debt, according to a news release.

Following the transactions, Fitch Ratings upgraded Citgo Holding and removed the company and Citgo Petroleum from Rating Watch Negative, the company said. The outlook is now stable.

Moody’s upgraded both Citgo Holding and Citgo Petroleum and raised the outlook to stable from negative.

“We are pleased with the confidence displayed by the capital markets in Citgo Holding and its underlying businesses, including Citgo Petroleum,” said Curtis Rowe, Citgo assistant vice president of finance, in the news release. “The resulting rating actions reflect our strong assets and positioning, protections which are provided to our creditors, along with our solid operational and financial performance.”

Citgo is a Houston-based refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals and other industrial products. The company is owned by Citgo Holding, Inc., an indirect wholly owned subsidiary of Petroleos de Venezuela, SA.

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