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Citgo Holding raises first-lien term loan B size to $1.3 billion
By Sara Rosenberg
New York, Feb. 9 – Citgo Holding Inc. increased the size of its 3¼-year senior secured first-lien term loan B to $1.3 billion from $1 billion, according to a market source.
Pricing on the loan remained at Libor plus 850 basis points with a 1% Libor floor and an original issue discount of 94, and it is still non-callable for one year, then at 102 in year two and 101 in year three.
The loan has a maximum debt to capitalization covenant of 75% and amortization of 1% per annum.
Earlier in syndication, pricing on the loan was raised from revised talk of Libor plus 825 bps and initial talk of Libor plus 800 bps, the discount widened from talk of 96 to 97 and the maturity was shortened from five years.
In addition, the excess cash flow sweep was previously changed to 100% initially, with step-downs to 75% and 50%, from initially being set at 75%, and the debt service reserve was modified to 12 months funded at all times and 18 months funded in order to make restricted payments subject to 2 times leverage, from six months of interest and principal on Citgo Holding debt.
Other changes made earlier included setting excess cash flow and asset sale paydowns at a premium of 101, limiting additional OpCo debt incurrence to $500 million, and enhancing the security package.
Deutsche Bank Securities Inc. is the bookrunner on the deal.
Proceeds will be used with bonds to fund a distribution to Citgo Holding’s ultimate parent.
Citgo is a Houston-based refiner, marketer and transporter of gasoline, diesel fuel, jet fuel, lubricants, petrochemicals and other petroleum-based industrial products.
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