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Citgo offers to buy up to $237.39 million of 9¼% notes due 2024
By Marisa Wong
Los Angeles, Nov. 10 – Citgo Holding, Inc. announced an offer to purchase for cash an aggregate principal amount of up to $237.391 million of its 9¼% senior secured notes due 2024, according to a press release.
Subject to the excess cash flow offer amount of $237.391 million, for each $1,000 principal amount of notes tendered and accepted by the company, holders will receive $1,000 in cash, plus accrued interest to but excluding the settlement date.
The offer will expire at 5 p.m. ET on Dec. 12. Tenders may be withdrawn at any time prior to that deadline.
Settlement is expected to be the fourth business day after the expiration time.
If the amount of notes tendered exceeds the offer cap, the company will purchase notes up to the excess cash flow offer amount on a pro rata basis.
Under the terms of the indenture governing the notes, the company is obligated to offer to purchase for cash an aggregate principal amount of up to the excess cash flow offer amount – equal to 50% of the excess cash flow of the company and some of its subsidiaries – of its outstanding notes at par. The offer is being made to satisfy this requirement.
TMI Trust Co. is the trustee.
Based in Houston, Citgo Holding is the direct parent of Citgo Petroleum Corp. and a wholly owned subsidiary of PDV Holding, Inc. PDV is an indirect wholly owned subsidiary of Petroleos de Venezuela, SA, which is owned and controlled by the government of Venezuela.
Citgo manufactures or refines and markets transportation fuels as well as petrochemicals, other industrial products and lubricants.
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