CITGO Petroleum Announces Proposed Private Offering of $750 Million of Senior Secured Notes

CITGO Petroleum Corporation (the "Company") today announced that it has commenced a private offering exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), of $750 million aggregate principal amount of senior secured notes due 2025 (the "notes").  The notes offering is subject to market and other conditions, and there is no assurance that the offering will be completed or, if completed, as to the terms on which it will be completed.

The Company intends to use the net proceeds from the sale of the notes to repay all $614 million outstanding under the Company's term loan B due 2021 and accrued and unpaid interest under the term loan B due 2021, pay all fees and expenses in connection with the offering, and for working capital and general corporate purposes.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the notes, nor will there be any sale of the notes in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.  The offer and sale of the notes have not been and will not be registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.  The notes are being offered only to qualified institutional buyers under Rule 144A under the Securities Act and to non-U.S. persons in offshore transactions in compliance with Regulation S under the Securities Act.