OLD GREENWICH, Conn., Jan. 30 /PRNewswire-FirstCall/ -- Premcor Inc.
(NYSE: PCO) announced today that it has completed its public offering of
12,500,000 shares of common stock at $20.00 per share. Additionally, in a
private placement that was completed concurrently with the closing of the
public offering, an aggregate of 2,860,400 shares were purchased at the public
offering price less underwriting commissions, or $19.20 per share, by
affiliates of The Blackstone Group L.P., affiliates of Occidental Petroleum
Corporation, Thomas D. O'Malley, the company's chairman and chief executive
officer, and certain officers of the company.
Net proceeds from the public offering and the private placement aggregated
$293.9 million. Premcor expects to use these net proceeds, together with the
net proceeds from the recently announced $525 million Senior Notes offering by
its subsidiary, The Premcor Refining Group, Inc. ("PRG"), to finance the
purchase from The Williams Companies of its refinery and related supply and
distribution assets located in and around Memphis, Tennessee; to acquire
certain Memphis refinery inventory and other working capital assets; to repay
$240 million in principal amount of PRG's floating rate notes due 2003 and
2004; to redeem the outstanding 11-1/2% Subordinated Exchange Debentures Due
2009 of its subsidiary, Premcor USA Inc. for $42.2 million; and for general
corporate purposes.
The securities offered in the private placement will not be, and have not
been, registered under the Securities Act of 1933 and may not be offered or
sold in the United States absent registration or an applicable exemption from
registration requirements.
Premcor Inc. is one of the largest independent petroleum refiners and
marketers of unbranded transportation fuels and heating oil in the United
States.
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, including the
company's current expectations with respect to future market conditions,
future operating results, the future performance of its refinery operations,
future acquisitions and related financing transactions, and planned debt
reductions. Words such as "expects," "intends," "plans," "projects,"
"believes," "estimates," "may," "will," "should," "shall," and similar
expressions typically identify such forward-looking statements. Even though
Premcor believes the expectations reflected in such forward-looking statements
are based on reasonable assumptions, it can give no assurance that its
expectations will be attained. Factors that could cause actual results to
differ materially from expectations include, but are not limited to,
operational difficulties, varying market conditions, potential changes in
gasoline, crude oil, distillate, and other commodity prices, government
regulations, and other factors contained from time to time in the reports
filed with the Securities and Exchange Commission by the company and its
subsidiaries, Premcor USA Inc. and The Premcor Refining Group Inc., including
the company's Form S-1 and the company's and its subsidiaries' quarterly
reports on Form 10-Q, reports on Form 8-K, and annual reports on Form 10-K.
SOURCE Premcor Inc.
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Related links:
http://www.premcor.com
CONTACT:
Media-Investors, Joe Watson, +1-203-698-7510,
or Investors, Karen Davis, +1-314-854-1424, or Michael Taylor,
+1-314-719-2304, all of Premcor Inc.
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