CVR Energy plans $1 billion private placement of senior notes

CVR Energy Inc. (NYSE: CVI) announced it intends to offer $1 billion in aggregate principal amount of senior unsecured notes in a private placement, subject to market conditions. The offering will include senior notes due 2031 and senior notes due 2034, guaranteed by certain domestic subsidiaries.

The Sugar Land, Texas-based company plans to use net proceeds from the offering, along with cash on hand or borrowings under its $345 million senior secured asset-based revolving credit facility, to repay its senior secured term loan facility and redeem existing debt securities.

Specifically, CVR Energy intends to redeem all outstanding 8.500% Senior Notes due 2029 and $217 million aggregate principal amount of its outstanding 5.750% Senior Notes due 2028.

The notes will be offered only to qualified institutional buyers under Rule 144A and to non-U.S. persons outside the United States under Regulation S of the Securities Act of 1933. The securities have not been registered under the Securities Act or state securities laws.

CVR Energy operates as a diversified holding company engaged in petroleum refining and marketing businesses, as well as nitrogen fertilizer manufacturing through its interest in CVR Partners LP. The company's subsidiaries serve as general partner and own approximately 37% of CVR Partners LP's common units.

The company cautioned that the offering may not be completed on the described terms or at all, according to the press release statement.

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