Citgo offers USD 1.5 billion in bonds due in 2020
Yield estimated at 10% - 11%
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The loan will be secured by USD 750 million in Citgo's midstream assets, including terminals and pipelines (File photo)
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EL UNIVERSAL
Wednesday January 28, 2015 05:40 PM
US-based Pdvsa's refining unit Citgo is offering USD 1.5 billion in bonds maturing in 2020 with a 10 % - 11 % yield, according to sources consulted by Thomson Reuters IFR.
The bond is initially offering a pick-up of up to 100 basis points over a USD 1 billion, 5-year term loan that is being launched jointly and marketed with price talk of about 800 basis points over Libor, for a yield of around 10%.
Citgo and Deutsche Bank -which is managing the transaction- announced last week in New York some details of the USD 2.5 billion credit package intended to raise money for Citgo's parent company, Petróleos de Venezuela (Pdvsa), amid falling crude oil prices and difficulties accessing foreign credit.
The loan will be secured by USD 750 million in Citgo's midstream assets, including terminals and pipelines, and a 49 % pledge on its equity.
Citgo is expected to hold a roadshow for the bond portion of the deal on Thursday and price the transaction next week.
The bond is initially offering a pick-up of up to 100 basis points over a USD 1 billion, 5-year term loan that is being launched jointly and marketed with price talk of about 800 basis points over Libor, for a yield of around 10%.
Citgo and Deutsche Bank -which is managing the transaction- announced last week in New York some details of the USD 2.5 billion credit package intended to raise money for Citgo's parent company, Petróleos de Venezuela (Pdvsa), amid falling crude oil prices and difficulties accessing foreign credit.
The loan will be secured by USD 750 million in Citgo's midstream assets, including terminals and pipelines, and a 49 % pledge on its equity.
Citgo is expected to hold a roadshow for the bond portion of the deal on Thursday and price the transaction next week.
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