CVR Energy Announces Pricing of Proposed Senior Secured Term Loan B Facility, 2025 Capital Expenditure Outlook, New Employment Agreement with Dave Lamp
CVR Energy (NYSE: CVI) has priced a $325 million senior secured term loan B facility due 2027, bearing interest at SOFR plus 4.0%. The loan proceeds will primarily fund capital expenditures, including the planned 2025 Coffeyville refinery turnaround. The company is also negotiating the potential sale of a midstream asset for under $100 million to enhance liquidity.
The company announced its 2025 capital expenditure outlook, with total spending projected between $165-205 million, excluding turnaround expenditures of $170-190 million for the Coffeyville refinery. The outlook includes maintenance spending of $108-132 million and growth capital of $57-73 million across Petroleum, Nitrogen Fertilizer, and Other segments.
Additionally, Dave Lamp has signed a new employment agreement as President and CEO, extending from January 2025 through December 2026.
CVR Energy (NYSE: CVI) ha fissato il prezzo di un prestito senior secured term loan B di 325 milioni di dollari con scadenza nel 2027, con un tasso d'interesse pari a SOFR più 4.0%. I proventi del prestito saranno utilizzati principalmente per finanziare spese in conto capitale, inclusa la pianificata fermata della raffineria di Coffeyville nel 2025. L'azienda sta anche negoziando la potenziale vendita di un asset midstream per meno di 100 milioni di dollari per migliorare la liquidità.
L'azienda ha annunciato le sue previsioni di spesa in conto capitale per il 2025, con una spesa totale prevista tra 165 e 205 milioni di dollari, escluse le spese per la fermata della raffineria di Coffeyville, stimate tra 170 e 190 milioni di dollari. Le previsioni includono spese per la manutenzione tra 108 e 132 milioni di dollari e capitale per la crescita di 57-73 milioni di dollari nei segmenti Petrolio, Fertilizzante Nitrogeno e Altri.
Inoltre, Dave Lamp ha firmato un nuovo contratto di lavoro come Presidente e CEO, valido da gennaio 2025 fino a dicembre 2026.
CVR Energy (NYSE: CVI) ha establecido un precio para un préstamo senior asegurado tipo term loan B de 325 millones de dólares que vencerá en 2027, con un interés de SOFR más 4.0%. Los fondos del préstamo se utilizarán principalmente para financiar gastos de capital, incluida la parada programada de la refinería de Coffeyville en 2025. La empresa también está negociando la posible venta de un activo midstream por menos de 100 millones de dólares para mejorar la liquidez.
La empresa anunció su perspectiva de gastos de capital para 2025, con un gasto total proyectado entre 165 y 205 millones de dólares, excluyendo los gastos de parada de 170 a 190 millones de dólares para la refinería de Coffeyville. La proyección incluye gastos de mantenimiento de 108 a 132 millones de dólares y capital de crecimiento de 57 a 73 millones de dólares en los segmentos de Petróleo, Fertilizante de Nitrógeno y Otros.
Además, Dave Lamp ha firmado un nuevo acuerdo laboral como Presidente y CEO, que se extenderá desde enero de 2025 hasta diciembre de 2026.
CVR 에너지 (NYSE: CVI)가 2027년 만기인 3억 2,500만 달러 규모의 선순위 담보 대출 B 시설의 가격을 설정하였으며, 이자율은 SOFR에 4.0%를 추가한 수준입니다. 대출 자금은 주로 2025년 코피빌 정유소의 정비를 포함한 자본 지출에 사용될 예정입니다. 이 회사는 또한 유동성을 높이기 위해 1억 달러 이하의 중간 매입 자산의 잠재적 매각을 협상하고 있습니다.
회사는 2025년 자본 지출 전망을 발표했으며, 전체 지출은 정유소의 정비를 위한 1억 7천만 달러에서 1억 9천만 달러를 제외하고 1억 6,500만 달러에서 2억 5만 달러로 예상됩니다. 전망에는 석유, 질소 비료 및 기타 부문에서 1억 8천만 달러에서 1억 3천만 달러의 유지 보수 지출과 5천7백만 달러에서 7천3백만 달러의 성장 자본이 포함됩니다.
또한, 데이브 램프는 2025년 1월부터 2026년 12월까지 이어지는 새로운 고용 계약에 서명하였습니다.
CVR Energy (NYSE: CVI) a fixé le prix d'un prêt senior garanti de 325 millions de dollars, échéance en 2027, portant des intérêts à SOFR plus 4,0%. Les recettes du prêt serviront principalement à financer des dépenses d'investissement, y compris l'arrêt prévu de la raffinerie de Coffeyville en 2025. L'entreprise négocie également la vente potentielle d'un actif midstream pour moins de 100 millions de dollars afin d'améliorer sa liquidité.
L'entreprise a annoncé ses prévisions de dépenses en capital pour 2025, avec une dépense totale prévue entre 165 et 205 millions de dollars, hors dépenses d'arrêt de 170 à 190 millions de dollars pour la raffinerie de Coffeyville. Les prévisions incluent des dépenses de maintenance de 108 à 132 millions de dollars et un capital de croissance de 57 à 73 millions de dollars dans les secteurs Pétrole, Engrais Azoté et Autres segments.
De plus, Dave Lamp a signé un nouveau contrat d'emploi en tant que Président et CEO, qui s'étendra de janvier 2025 à décembre 2026.
CVR Energy (NYSE: CVI) hat einen Preis für ein 325 Millionen Dollar umfassendes, senior besichertes Term-Darlehen B festgelegt, das 2027 fällig wird und Zinsen in Höhe von SOFR plus 4,0% trägt. Die Darlehensmittel sollen hauptsächlich für Investitionen verwendet werden, einschließlich der geplanten Umstellung der Raffinerie in Coffeyville im Jahr 2025. Das Unternehmen verhandelt außerdem über den potenziellen Verkauf eines Midstream-Vermögens für unter 100 Millionen Dollar, um die Liquidität zu verbessern.
Das Unternehmen gab seine Kapitalausgabenprognose für 2025 bekannt, wobei die Gesamtausgaben zwischen 165 und 205 Millionen Dollar liegen sollen, ohne die Turnaround-Ausgaben von 170 bis 190 Millionen Dollar für die Raffinerie Coffeyville. Die Prognose umfasst Wartungsausgaben von 108 bis 132 Millionen Dollar und Wachstumsinvestitionen von 57 bis 73 Millionen Dollar in den Bereichen Erdöl, Stickstoffdünger und andere Segmente.
Darüber hinaus hat Dave Lamp einen neuen Arbeitsvertrag als President und CEO unterzeichnet, der von Januar 2025 bis Dezember 2026 gilt.
- Secured $325 million term loan facility to strengthen liquidity
- Potential sale of midstream asset for up to $100 million
- Clear capital expenditure planning with $165-205 million allocated for 2025
- Significant upcoming turnaround costs of $170-190 million for Coffeyville refinery
- New debt facility increases interest expense with SOFR + 4.0% rate
Insights
SUGAR LAND, Texas, Dec. 12, 2024 (GLOBE NEWSWIRE) -- CVR Energy, Inc. (NYSE: CVI, “CVR Energy” or the “Company”) today announced that certain of its wholly owned subsidiaries have priced a proposed
CVR Energy today also announced that, on December 12, 2024, it entered into a new employment agreement with Dave Lamp, its President and Chief Executive Officer and a member of its Board of Directors, which agreement is expected to commence on January 1, 2025, immediately following expiration of his existing employment agreement, and end on December 31, 2026, unless earlier terminated in accordance with its terms. This summary of the employment agreement is qualified in its entirety by the terms of the agreement, which will be reported on a Form 8-K to be filed with the U.S. Securities and Exchange Commission within four business days of execution.
“As we discussed in our last earnings call, in light of current market conditions and our upcoming large turnaround at the Coffeyville refinery, we considered it prudent to further strengthen our liquidity and balance sheet. We are pleased with the positive feedback we have received relating to our potential Facility and feel confident in our ability to successfully close the Facility before year-end,” said Dave Lamp, CVR Energy’s President and Chief Executive Officer. “I consider these actions, as well as those announced in our last earnings call, as positioning CVR Energy to take advantage of improving market conditions when they occur, as I believe they will. I’m also pleased to announce that I have entered into a new employment agreement to extend my tenure as President and Chief Executive Officer of CVR Energy and Executive Chairman of CVR Partners’ general partner. I am proud of what we have accomplished over the past seven years and look forward to leading our companies into the future.”
2025 Capital Expenditure Outlook
The Company also published its capital expenditure outlook for 2025 set forth below, which for its Petroleum segment and Corporate and other businesses is generally focused on projects the Company considers necessary to maintaining safe, reliable operations and projects currently underway that would incur additional costs by deferring completion such as the ongoing project to eliminate hydrofluoric acid from the Wynnewood refinery alkylation unit, which currently accounts for the majority of the growth capital spending planned for the Petroleum segment in 2025. The Petroleum segment capital expenditure outlook does not include expected turnaround expenditures of
| 2025 Estimate | ||||||||||||||||
| Maintenance | Growth | Total | ||||||||||||||
| Low | High | Low | High | Low | High | |||||||||||
| Petroleum | $ | 70 | $ | 80 | $ | 35 | $ | 45 | $ | 105 | $ | 125 | ||||
| Nitrogen Fertilizer | 35 | 45 | 20 | 25 | 55 | 70 | ||||||||||
| Other(1) | 3 | 7 | 2 | 3 | 5 | 10 | ||||||||||
| Total | $ | 108 | $ | 132 | $ | 57 | $ | 73 | $ | 165 | $ | 205 | ||||
(1) Includes renewables spending for the Wynnewood refinery’s renewable diesel unit. As of September 30, 2024, the Renewables business was not a reportable segment.
Forward-Looking Statements
This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding: our expectations regarding the closing of the Facility on the terms or in the time indicated, and the use of proceeds thereof; the potential sale, if any, of interests in certain midstream assets and the anticipated value of any such sale and resulting benefits (if any) thereof; the expected commencement and duration of a new employment agreement with Mr. Lamp, as well as the expiration of an existing agreement therewith; the planned turnaround at our Coffeyville refinery; our capital expenditures outlook, including in respect of our segments and on a consolidated basis, and the allocation of anticipated amounts to fund certain projects and turnarounds and the use of certain cash reserves in connection therewith; continued safe and reliable operations; our future results, performance or achievements and drivers thereof; disruptions to operations (planned and unplanned), including impacts on results; general economic and business conditions; capital expenditures; and other matters. You can generally identify forward-looking statements by our use of forward-looking terminology such as “outlook,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “explore,” “evaluate,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “seek,” “should,” “upcoming,” “before,” “future,” or “will,” or the negative thereof or other variations thereon or comparable terminology. These forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. Investors are cautioned that various factors may affect these forward-looking statements, including (among others): the satisfaction of the closing conditions prior to closing the Facility; our ability to negotiate terms related to the potential midstream asset sale, if any, that are acceptable; the health and economic effects of any pandemic; demand for fossil fuels and price volatility of crude oil, other feedstocks and refined products; the ability of Company to pay cash dividends and of CVR Partners to make cash distributions; potential operating hazards, including the impacts of fires at our facilities; costs of compliance with existing or new laws and regulations and potential liabilities arising therefrom; impacts of the planting season on CVR Partners; our controlling shareholder’s intention regarding ownership of our common stock and potential strategic transactions involving us or CVR Partners; capital expenditures and the amount, timing, purposes and benefits thereof; general economic and business conditions; political disturbances, geopolitical instability and tensions; impacts of plant outages and weather conditions and events; and other risks. For additional discussion of risk factors which may affect our results, please see the risk factors and other disclosures included in our most recent Annual Report on Form 10-K, any subsequently filed Quarterly Reports on Form 10-Q and our other Securities and Exchange Commission (“SEC”) filings. These and other risks may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this news release are made only as of the date hereof. CVR Energy disclaims any intention or obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.
About CVR Energy, Inc.
Headquartered in Sugar Land, Texas, CVR Energy is a diversified holding company primarily engaged in the renewables, petroleum refining and marketing business as well as in the nitrogen fertilizer manufacturing business through its interest in CVR Partners. CVR Energy subsidiaries serve as the general partner and own 37 percent of the common units of CVR Partners.
Investors and others should note that CVR Energy may announce material information using SEC filings, press releases, public conference calls, webcasts and the Investor Relations page of its website. CVR Energy may use these channels to distribute material information about the Company and to communicate important information about the Company, corporate initiatives and other matters. Information that CVR Energy posts on its website could be deemed material; therefore, CVR Energy encourages investors, the media, its customers, business partners and others interested in the Company to review the information posted on its website.
Contact Information:
Investor Relations
Richard Roberts
(281) 207-3205
InvestorRelations@CVREnergy.com
Media Relations
Brandee Stephens
(281) 207-3516
MediaRelations@CVREnergy.com
FAQ
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