Par Pacific Announces Paydown of $85 Million Principal Amount of Debt

Rhea-AI Summary

Par Pacific Holdings, Inc. (NYSE: PARR) has successfully paid down $85 million in principal debt, enhancing its financial position. The company redeemed $36.75 million of its Senior Secured Notes due 2026 at a premium, leaving $68.25 million outstanding. Additionally, it fully paid $48.7 million of its Convertible Senior Notes due 2021. Par Hawaii Refining, LLC has entered a supply agreement with J. Aron & Company, effective until May 31, 2024. CFO Will Monteleone stated that these efforts contribute to their capital allocation strategy while maintaining over $200 million in liquidity.

Positive

• Reduced funded debt by $85 million.
• Maintained liquidity above $200 million.
• Entered new supply agreement with J. Aron & Company.

Negative

• None.

HOUSTON, June 15, 2021 (GLOBE NEWSWIRE) -- Par Pacific Holdings, Inc. (NYSE: PARR) (“Par Pacific”) today announced the paydown of an aggregate $85 million principal amount of debt.

On June 14, 2021, Par Petroleum LLC redeemed $36.75 million aggregate principal amount of its 12.875% Senior Secured Notes due 2026 at a redemption price of 112.875% of the aggregate principal amount of the notes redeemed, plus the accrued and unpaid interest as of the redemption date. Following the redemption, $68.25 million in aggregate principal amount of the Senior Secured Notes due 2026 remain outstanding.

On June 15, 2021, the remaining $48.7 million aggregate principal amount of Par Pacific’s 5.00% Convertible Senior Notes due 2021 matured and were paid in full.

In addition, Par Hawaii Refining, LLC (“PHR”) recently announced that it had entered into a Second Amended and Restated Supply and Offtake Agreement with J. Aron & Company LLC, pertaining to crude oil supply and offtake arrangements for PHR’s Hawaii refineries, effective through May 31, 2024.

“As a result of these debt repayments, we have reduced our outstanding funded debt by $85 million while liquidity remains in excess of $200 million,” said Will Monteleone, Chief Financial Officer. “These actions are consistent with our capital allocation priorities and reduce our funding costs.”

About Par Pacific

Par Pacific Holdings, Inc. (NYSE: PARR), headquartered in Houston, Texas, owns and operates market-leading energy, infrastructure, and retail businesses. Par Pacific’s strategy is to acquire and develop businesses in logistically complex markets. Par Pacific owns and operates one of the largest energy networks in Hawaii with 94,000 bpd of operating refining capacity, a logistics system supplying the major islands of the state and 90 retail locations. In the Pacific Northwest and the Rockies, Par Pacific owns and operates 60,000 bpd of combined refining capacity, related multimodal logistics systems, and 31 retail locations. Par Pacific also owns 46% of Laramie Energy, LLC, a natural gas production company with operations and assets concentrated in Western Colorado. More information is available at www.parpacific.com.

For more information contact:
Ashimi Patel
Senior Manager, Investor Relations
(832) 916-3355
apatel@parpacific.com

FAQ

What debt did Par Pacific Holdings pay down on June 14, 2021?

Par Pacific Holdings redeemed $36.75 million of its 12.875% Senior Secured Notes due 2026.

What is the current outstanding amount of Senior Secured Notes for Par Pacific?

Following the redemption, $68.25 million of the Senior Secured Notes due 2026 remain outstanding.

How much liquidity does Par Pacific Holdings have after the debt paydown?

Par Pacific maintains liquidity in excess of $200 million.

What agreement did Par Hawaii Refining announce on June 15, 2021?

Par Hawaii Refining announced a Second Amended and Restated Supply and Offtake Agreement with J. Aron & Company, effective through May 31, 2024.

What Convertible Senior Notes did Par Pacific Holdings mature on June 15, 2021?

On June 15, 2021, Par Pacific fully paid the $48.7 million aggregate principal amount of its 5.00% Convertible Senior Notes due 2021.