U.S. refiner Citgo Petroleum said last week it received $1.2 billion in financing via a five-year Term Loan B, with participation from roughly 35 financial institutions.
As part of the transaction, Citgo’s $320 million accounts receivable securitization facility and $900 million revolver, with maturities in May and July, 2019, respectively, were retired, Kallanish Energy reports.
“The significant interest in our debt offering reflects the underlying strength of our company — operationally, financially and in terms of our leadership,” said Citgo executive vice president Rick Esser, “So we were able to finalize a deal that provides great stability and security for our business.”
Since the U.S. government imposed sanctions on Petróleos de Venezuela, S.A. (Pdvsa) on Jan. 28, Citgo has operated within the restrictions of those sanctions through General License 7.
As of March 14, General License 7 was replaced by General License 7A, providing an 18-month authorization that renews automatically on a monthly basis. This rolling extension allows Citgo to maintain operations in markets that are based on long-term planning and contractual commitments, the company said. Citgo operates three refineries in the U.S
In late February, Citgo replaced its board and senior management with men and a woman picked with experience in the business and to distance the company from Venezuela President Nicolas Maduro and Pdvsa.
“With our rolling license extension and now our refinancing firmly in place, our employees, marketers, retailers, business partners and the financial community can be confident in their dealings with Citgo,” continued Esser.
This post appeared first on Kallanish Energy News.