OLD GREENWICH, Conn., Nov. 12 /PRNewswire-FirstCall/ -- Premcor Inc.
(NYSE: PCO) today announced that its wholly-owned subsidiary, The Premcor
Refining Group Inc. ("PRG"), has completed its offering of $385 million in
aggregate principal amount of Senior Notes and Senior Subordinated Notes at
par under the following terms:
-- $210 million of Senior Notes due 2011 at 6 3/4%; and
-- $175 million of Senior Subordinated Notes due 2012 at 7 3/4%.
PRG intends to use the gross proceeds from the offering to redeem its
outstanding $100 million of 8 3/8% Senior Notes due 2007, $110 million of 8
5/8% Senior Notes due 2008, and $175 million of 8 7/8% Senior Subordinated
Notes due 2007. The Company announced today that these notes have been called
for redemption to be effected on December 12, 2003. Redemption of the notes
will include call premiums of 2.094% for the 8 3/8% Senior Notes, 4.312% for
the 8 5/8% Senior Notes and 2.958% for the 8 7/8% Senior Subordinated Notes.
The Company expects to record a pretax charge in the fourth quarter totaling
approximately $17 million related to the redemptions, including $12 million
for the redemption premiums and $5 million for the non-cash write-off of
deferred financing costs related to the redeemed notes.
Thomas D. O'Malley, Premcor's Chairman and Chief Executive Officer, said,
"Favorable market conditions and a strong reception to our offering have
allowed us to lower our financing costs by over $6 million annually, and to
extend the maturity dates on our nearest-term debt. Over the next few years
we will be making substantial investments in clean fuels upgrades, and we have
now extended our significant debt maturities well beyond this investment
period. We are confident we can fund our clean fuels investment and Port
Arthur expansion programs with our cash on hand and cash generated by our
operations between now and the end of 2006."
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,
and other plans. 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
subsidiary, The Premcor Refining Group Inc., including quarterly reports on
Form 10-Q, current 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 (Investors), all for Premcor Inc.
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