Citgo launches $500 million term loan at Libor plus 725-750 bps

By Sara Rosenberg

New York, July 17 – Citgo Holding Inc. launched on Wednesday its $500 million four-year senior secured first-lien term loan (//B+) with price talk of Libor plus 725 basis points to 750 bps with a 1% Libor floor and an original issue discount of 98, according to a market source.

The term loan is non-callable for one year, then at 101 in year two.

Jefferies LLC is the left lead arranger on the deal.

Commitments are due at noon ET on July 25, the source said.

Proceeds from the term loan will be used with a new $1.37 billion senior secured note offering and cash on hand to redeem all of the company’s $1.87 billion 10¾% senior secured notes due 2020 and to pay related accrued interest and redemption premiums.

Citgo is a Houston-based owner and operator of three large-scale, highly complex refineries.

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