OLD GREENWICH, Conn., May 30 /PRNewswire/ -- 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,
received valid consents representing 97% of the aggregate principal amount of
the outstanding Port Arthur Finance Corp. 12 1/2% Senior Notes due 2009 in
connection with a consent solicitation that expired yesterday relating to the
Notes. Holders who delivered their consents on or prior to the expiration
time will receive a consent fee of $20 per $1,000 principal amount of the
Notes. The closing of the consent and the related restructuring discussed
below and the payment of the consent fee is expected to occur on or about
June 5, 2002.
The consents allow for a series of proposed amendments to the financing
and security documents under which the notes were issued. The amendments will
facilitate a 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. Upon the amendments
becoming effective on closing, 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 is conditioned upon the satisfaction or waiver of
certain other conditions, all of which are expected to be satisfied prior to
closing. As required, the rating agencies have reaffirmed their credit
ratings of the 12 1/2% Senior Notes after giving effect to the proposed
amendments and restructuring.
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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