Exhibit 99.2
[LOGO]
Premcor
Premier People,
Products and Services
NEWS RELEASE ------------------------------------
Premcor Inc.
1700 East Putnam
Suite 500
Old Greenwich, CT 06870
203-698-7500
203-698-7925 fax
PREMCOR COMPLETES COMMON STOCK OFFERINGS
OLD GREENWICH, Connecticut, January 30, 2003 - 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.
###
Contacts:
Premcor Inc.
Joe Watson, (203) 698-7510 (Media/Investors)
Karen Davis, (314) 854-1424 (Investors)
Michael Taylor, (314) 719-2304 (Investors)