EXHIBIT 99.1
NEWS RELEASE
CITGO PETROLEUM CORPORATION, 1293 ELDRIDGE AVE., HOUSTON, TX 77077
KATE ROBBINS 832/486-5764 JENNIFER HILL 918/495-4260
FACSIMILE 832/486-1814
FOR IMMEDIATE RELEASE:
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CITGO Petroleum Corporation Cash Tender Offer for 11-3/8% Senior Notes
TULSA, Okla., October 8, 2004 -- CITGO Petroleum Corporation today announced
that it has commenced a cash tender offer (the "Offer") for any and all of its
outstanding $550,000,000 11-3/8% senior notes due 2011 and a solicitation of
consents (the "Consent Solicitation") to eliminate certain restrictive
covenants from the indenture governing the 11-3/8% notes. The Offer and Consent
Solicitation are being made pursuant to an Offer to Purchase and Consent
Solicitation Statement, dated October 8, 2004.
The total consideration will be determined by pricing the 11-3/8% notes
using standard market practice to the First Call date at a fixed spread of 85
basis points over the bid side yield on the 2.625% Treasury Note due November
15, 2006, determined at 2:00 p.m. New York City time on October 20, 2004 (the
"Pricing Date") by reference to the Bloomberg Pricing Monitor. Holders who
tender and deliver their consents to the proposed amendments to the indenture
governing the 11-3/8% notes by 5:00 p.m. New York City time on October 19, 2004
(the "Consent Date") will be eligible to receive the total consideration, which
includes a consent payment equal to $30 per $1,000 principal amount of 11-3/8%
notes tendered. Holders who tender after the Consent Date but by November 5,
2004 (the "Expiration Date") will be eligible to receive the tender offer
consideration, which equals the total consideration less the consent payment.
The Offer is subject to, and conditioned upon, the receipt by CITGO of
proceeds from an offering of its debt securities under a new financing. This
financing condition is in addition to other conditions set forth in the Offer
to Purchase and Consent Solicitation Statement.
We expect to pay holders who validly tender their 11-3/8% notes by the
Consent Date promptly following the satisfaction of the financing condition. We
expect to pay holders who validly tender and do not withdraw their 11-3/8% notes
after the Consent Date, but by the Expiration Date, promptly following the
Expiration Date.
Lehman Brothers Inc. is the Dealer Manager and Solicitation Agent, and
D.F. King & Co., Inc. is the Information Agent, in connection with the Offer
and Consent Solicitation. Requests for information should be directed to Lehman
Brothers Inc. at (212) 528-7581 (call collect) or (800) 438-3242 (toll free).
Requests for documents should be directed to D.F. King & Co., Inc. at (212)
269-5550 (call collect) or (800) 290-6431 (toll free).
This press release is not an offer to purchase or the solicitation of
an offer to sell with respect to the 11-3/8% notes. The offers are being made
solely by the Offer to Purchase and Consent Solicitation Statement.
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ABOUT CITGO
CITGO Petroleum Corporation is a leading refining and marketing
company based in Houston, Texas, with approximately 4,000 employees and annual
revenues of approximately $25 billion. CITGO's ultimate parent is Petroleos de
Venezuela, S.A. (PDVSA), the national oil company of the Bolivarian Republic of
Venezuela and its largest supplier of crude oil.
CITGO operates fuels refineries in Lake Charles, Louisiana, Corpus
Christi, Texas, and Lemont, Illinois, and asphalt refineries in Paulsboro, New
Jersey and Savannah, Georgia. CITGO has long-term crude oil supply agreements
with PDVSA for a portion of the crude oil requirements at these facilities.
CITGO is also a 41-percent participant in LYONDELL-CITGO Refining LP, a joint
venture fuels refinery located in Houston, Texas. CITGO's interests in these
refineries result in a total crude oil capacity of approximately 865,000
barrels per day.
Serving nearly 14,000 branded, independently owned and operated retail
locations, CITGO is also one of the five largest branded gasoline suppliers
within the United States.
FORWARD LOOKING STATEMENTS
Except for the historical information contained in this release,
certain of the matters discussed in this release may be deemed to be
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Words such as "anticipate," "estimate," "expect," "project," "believe" and
similar expressions generally identify a forward-looking statement. The factors
that could cause actual results to differ materially from the forward-looking
statements include general economic activity, developments in international and
domestic petroleum markets, refinery turnarounds and operations as well as the
other factors identified in our filings with the U.S. Securities and Exchange
Commission. Readers are cautioned not to place undue reliance on these
forward-looking statements, which apply only as of the date of this release.
CITGO disclaims any duty to update any forward-looking statements.