Hovensa gets tenders for 99.94% of refinery facilities revenue bonds

By Angela McDaniels

Tacoma, Wash., Feb. 21 - Hovensa LLC received tenders for $355,453,000 of refinery facilities revenue bonds in a tender offer that expired at 11:59 p.m. ET on Feb. 17, according to a company news release.

The bonds tendered represent 99.94% of the $355,683,000 principal amount of bonds eligible for the offer.

Holders tendered

• $63.02 million, or 100%, of the 6.5% bonds due July 1, 2021, series 2002, issued by the Government of the United States Virgin Islands for the Hovensa coker project;

• $63,733,000, or 100%, of the 6.5% bonds due July 1, 2021, series 2002, issued by the Virgin Islands Public Finance Authority for the Hovensa coker project;

• $74.09 million, or 99.89%, of the $74,175,000 6.125% senior secured tax-exempt bonds due July 1, 2022, series 2003, issued by the Virgin Islands Public Finance Authority for the Hovensa refinery;

• $50,515,000, or 99.71%, of the $50.66 million 5.875% senior secured tax-exempt bonds due July 1, 2022, series 2004, issued by the Virgin Islands Public Finance Authority for the Hovensa refinery; and

• $104,095,000, or 100%, of the 4.7% senior secured tax-exempt bonds due July 1, 2022, series 2007, issued by the Virgin Islands Public Finance Authority for the Hovensa refinery.

The company accepted all of the tendered bonds for purchase. It will pay par plus accrued interest up to but excluding the settlement date, which was expected to be Feb. 21.

The tender offer began Jan. 23 and was subject to the company having enough cash on hand on the expiration date to purchase the tendered bonds. It was not conditioned on the tender of any minimum principal amount of bonds.

The dealer manager was Goldman Sachs & Co. (800 828-3182 or 212 357-4692). The depositary and information agent was Global Bondholder Services Corp. (866 857-2200 or 212 430-3774).

Hovensa owns a crude oil refinery in St. Croix in the U.S. Virgin Islands. It is owned 50% by a subsidiary of Hess Corp. and 50% by a subsidiary of Petroleos de Venezuela, SA.

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