Coffeyville Resources to offer to buy 9% notes, 10 7/8% notes at 103

By Angela McDaniels

Tacoma, Wash., Dec. 20 - Coffeyville Resources LLC must offer to buy a portion of its $275 million of 9% first-lien senior secured notes due 2015 and $225 million of 10 7/8% second-lien senior secured notes due 2017 at 103 plus accrued interest, according to an S-1 filed with the Securities and Exchange Commission by CVR Partners, LP.

The requirement to hold the tender offer will be triggered when CVR completes its planned initial public offering of common units.

Once the IPO is completed, CVR will no longer guarantee the notes, the assets of its fertilizer business will no longer be collateral for the notes, and it will no longer be subject to the negative covenants contained in the indentures governing the notes.

The CVR common units that Coffeyville owns will still be collateral for the notes.

CVR will use the proceeds of the IPO to pay a special distribution to Coffeyville.

CVR Partners and Coffeyville Resources are units of CVR Energy Inc., a Sugar Land, Texas-based diversified energy company and fertilizer manufacturer.

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