Tesoro looks to amend term loans, 8% notes

New York, March 15 - Tesoro Petroleum Corp. said that it has begun soliciting consents to amend the indenture relating to its 8% senior secured notes due 2008 and to amend its credit and guaranty agreement relating to its senior secured term loans due 2008.

The consent solicitation will expire at 5 p.m. ET on March 26.

Tesoro, a San Antonio, Texas-based energy refiner and marketer, is seeking to amend the notes' indenture to exempt all repayments that may be made with respect to its $300 million 9% senior subordinated notes due 2008 from the restrictions in the indenture and credit and guaranty agreement.

It said that effectiveness of the amendments will be conditioned upon the company receiving the consent of holders of not less than a majority of the outstanding principal amounts of each security.

Tesoro also noted that it has repaid more than $500 million of debt since closing on the acquisition of the Golden Eagle refinery in May 2002, citing the combination of strong operating results in 2003 and solid capital discipline. The company expects that the improved industry conditions should continue into 2004 and is committed to further reducing debt from free cash flow.

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