Citgo Holding ups spread on $1 billion term B to Libor plus 825 bps

By Sara Rosenberg

New York, Feb. 5 – Citgo Holding Inc. raised pricing on its $1 billion five-year senior secured first-lien term loan B (Caa1/B-/B+) to Libor plus 825 basis points from Libor plus 800 bps, according to a market source.

Also, the original issue discount on the term loan B widened to 94 from talk of 96 to 97, the source said.

The term loan B still has a 1% Libor floor and is still non-callable for one year, then at 102 in year two and 101 in year three.

Amortization on the term loan is 1% per annum.

The loan has a maximum debt to capitalization covenant of 75%, a debt service reserve of six months of interest and principal on Citgo Holding debt and an excess cash flow sweep initially set at 75%.

Recommitments are due at noon ET on Friday, the source added.

Deutsche Bank Securities Inc. is the bookrunner on the deal.

Proceeds will be used with an expected $1.5 billion pari passu high-yield offering to fund a distribution to Citgo Holding’s ultimate parent.

Citgo is a Houston-based refiner, marketer and transporter of gasoline, diesel fuel, jet fuel, lubricants, petrochemicals, and other petroleum-based industrial products.

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