OLD GREENWICH, Conn., May 16 /PRNewswire-FirstCall/ -- Sabine River
Holding Corp., a 90 percent owned subsidiary of Premcor Inc. (NYSE: PCO),
today announced that its subsidiaries, Port Arthur Finance Corp. and Port
Arthur Coker Company, are commencing a consent solicitation relating to Port
Arthur Finance Corp. 12-1/2% Senior Notes due 2009. Consents are being
solicited for a series of proposed amendments to the financing and security
documents under which the notes were issued. The amendments would facilitate
a proposed restructuring that would, among other things, permit the prepayment
of $221.4 million of Port Arthur Finance Corp.'s existing bank debt and result
in Sabine River Holding Corp. and its subsidiary companies becoming wholly
owned direct or indirect subsidiaries of The Premcor Refining Group Inc., a
wholly owned indirect subsidiary of Premcor Inc. If the amendments become
effective, The Premcor Refining Group Inc. will fully and unconditionally
guarantee the payment obligations under the Port Arthur Finance Corp. 12-1/2%
Senior Notes.
The consent solicitation will expire at 5:00 p.m., New York City time, on
May 29, 2002, unless extended by the company. The consent solicitation is
conditioned upon the receipt of valid consents from at least a majority of the
aggregate principal amount of the outstanding Notes and the satisfaction or
waiver of certain other conditions, including the rating agencies reaffirming
their credit ratings of the 12-1/2% Senior Notes after giving effect to the
proposed amendments and restructuring. In order to be eligible for the
consent fee of $20 per $1,000 principal amount of the Notes, holders must
deliver their consents on or prior to the time set for expiration. Consents
may be revoked any time prior to 5:00 p.m., New York City time, on
May 29, 2002 but not thereafter.
The Premcor Refining Group Inc. guarantee referred to above has not been,
and will not be, 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.
Sabine River Holding Corp., through its wholly-owned subsidiary, Port
Arthur Coker Company L.P., owns and operates a heavy oil processing facility
that includes a new 80,000 barrels per day, or bpd, delayed coking unit, a
35,000 bpd hydrocracker unit, and a 417 long tons per day sulfur complex. The
facility is operated in conjunction with the refining assets of the company's
affiliate, The Premcor Refining Group Inc., at its Port Arthur, Texas
refinery.
SOURCE Sabine River Holding Corp.
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Related links:
http://www.premcorinc.com
CONTACT:
Joe Watson, +1-314-854-9889, or Karen Davis,
+1-314-854-1424, both of Sabine River Holding Corp.
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