CITGO Enhances Liquidity
Feb 28, 2003
CITGO Enhances Liquidity
Also, CITGO has closed on a three-year $200-million Senior Secured Term B Loan. Security is CITGO’s 15.8-percent equity interest in Colonial Pipeline and CITGO’s 6.8-percent equity interest in Explorer Pipeline. Both pipelines are common carrier refined products pipelines that serve the U.S. East Coast and the
In addition, a $200-million accounts receivable facility has been completed with a major financial institution. This facility allows for the non-recourse sale of certain of CITGO’s accounts receivable to independent third parties.
These three transactions totaling $950-million enhance CITGO’s liquidity position. CITGO’s President & CEO Oswaldo Contreras said, “These transactions are significant steps toward strengthening CITGO’s ongoing liquidity during a period when refining margins could be volatile and there are significant regulatory capital expenditures being forced on the industry. In addition, in February 2003, CITGO received 100-percent of its contract crude oil volumes from
CITGO Petroleum Corporation is a leading energy company engaged in the refining, marketing and transportation of petroleum products including gasoline, diesel fuel, jet fuel, petrochemicals, lubricants, asphalt and refined waxes. The Company operates fuels refineries in
This news release contains forward looking statements. Specifically, all statements pertaining to our margins, net income, liquidity, capital expenditures and available capital resources are forward looking statements. These forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the forward looking statements. These risks and uncertainties include developments in Venezuela and third parties’ perceptions and reactions to them; changes in the availability and cost of crude oil, feedstocks, blending components and refined products; changes in prices or demand for CITGO products as a result of competitive actions or economic factors; changes in environmental and other regulatory requirements, which may affect operations, operating costs and capital expenditure requirements; costs and uncertainties associated with technological change and implementation; inflation; and continued access to capital markets and commercial bank financing on favorable terms. Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date of this release. We undertake no obligation to publicly release any revision to these forward looking statements to reflect events or circumstances after the date of this report.
For more information, see CITGO’s website at www.CITGO.com."