Citgo trims spread on $500 million term loan to Libor plus 700 bps

By Sara Rosenberg

New York, July 23 – Citgo Holding Inc. reduced pricing on its $500 million four-year senior secured first-lien term loan (Caa1/B/B+) to Libor plus 700 basis points from talk in the range of Libor plus 725 bps to 750 bps, according to a market source.

Also, the original issue discount on the term loan was tightened to 98.5 from 98, the source said.

The term loan still has a 1% Libor floor and call protection of non-callable for one year, then at 101 in year two.

Jefferies LLC is the left lead arranger on the deal.

Recommitments are due at 10 a.m. ET on Wednesday, the source added.

Proceeds from the term loan will be used with a new $1.37 billion senior secured notes 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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