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CVR Energy Announces Pricing of Proposed Senior Secured Term Loan B Facility, 2025 Capital Expenditure Outlook, New Employment Agreement with Dave Lamp
CVRChicago Rivet & Machine (CVR) GlobeNewswire News Room·2024-12-12 22:14

Core Viewpoint - CVR Energy is strengthening its liquidity through a proposed 325millionseniorsecuredtermloanB,primarilyforcapitalexpenditures,includingasignificantturnaroundattheCoffeyvillerefineryin2025[1][3]FinancingandCapitalExpenditures−ThetermloanBwillbeissuedat99325 million senior secured term loan B, primarily for capital expenditures, including a significant turnaround at the Coffeyville refinery in 2025 [1][3] Financing and Capital Expenditures - The term loan B will be issued at 99% of face value and will bear interest at SOFR plus 4.0%, with closing expected by year-end 2024 [1] - The proceeds from the loan are intended for capital expenditures, particularly for the Coffeyville refinery turnaround, which is projected to cost between 170 million and 190million[4]−Thecompanyisalsonegotiatingthepotentialsaleofmidstreamassets,withexpectedproceedsunder190 million [4] - The company is also negotiating the potential sale of midstream assets, with expected proceeds under 100 million, aimed at enhancing liquidity [1][3] Management and Employment Agreements - CVR Energy has entered into a new employment agreement with Dave Lamp, effective January 1, 2025, which will extend until December 31, 2026 [2] - This agreement follows the expiration of his current contract and is part of the company's strategy to maintain leadership stability during upcoming operational changes [2][3] 2025 Capital Expenditure Outlook - The capital expenditure outlook for 2025 includes 70millionforthePetroleumsegment,70 million for the Petroleum segment, 35 million for Nitrogen Fertilizer, and 3millionforotherprojects,totaling3 million for other projects, totaling 108 million [4] - The Petroleum segment's capital expenditures focus on maintaining safe operations and completing ongoing projects, including the elimination of hydrofluoric acid from the Wynnewood refinery [4][5]