CVR Energy Announces $1.1 Billion Private Placement of Senior Notes and Notice of Conditional Redemption for its 6.500% Second Lien Senior Secured Notes due 2022

SUGAR LAND, Texas, Jan. 07, 2020 (GLOBE NEWSWIRE) -- CVR Energy, Inc. (NYSE: CVI) (the “Company” or “CVR Energy”) announced today that, subject to market conditions, it intends to offer (the “Offering”) for sale to eligible purchasers in a private placement under Rule 144A and Regulation S of the Securities Act of 1933, as amended (the “Securities Act”), $1.1 billion in aggregate principal amount of senior unsecured notes, consisting of senior unsecured notes due 2025 and senior unsecured notes due 2028 (the “Notes”). The Company intends to use the net proceeds from the Offering to fund the redemption of all the outstanding 6.500% Second Lien Senior Secured Notes due 2022 (the “2022 Notes”) issued by CVR Refining, LLC and Coffeyville Finance Inc., each indirect wholly owned subsidiaries of the Company (the “Subsidiary Issuers”). The remaining net proceeds will be used for general corporate purposes, which may include funding (i) acquisitions, (ii) capital projects and/or (iii) share repurchases or other distributions to its stockholders.

The Company also announced today that the Subsidiary Issuers have delivered a notice of conditional redemption for all the outstanding 2022 Notes at a redemption price equal to 101.083% (expressed as a percentage of the principal amount of the 2022 Notes to be redeemed), plus accrued and unpaid interest, if any, on the 2022 Notes to be redeemed on the Redemption Date (as defined below) (subject to the right of holders of record on the relevant record date to receive interest due on an interest payment date that is on or prior to the Redemption Date) (the “Redemption Price”). The redemption date for the 2022 Notes provided in the notice of conditional full redemption is January 27, 2020 (the “Redemption Date”). The Subsidiary Issuers’ obligation to redeem the 2022 Notes is conditioned upon the prior consummation of the issuance of the Notes by the Company or one or more of its subsidiaries, on or prior to the Redemption Date, of an offering of senior unsecured notes in an aggregate principal amount that results in gross proceeds to such issuer(s) of at least $500,000,000. The Company will publicly announce and notify the holders of the 2022 Notes and the Trustee (as defined below) if any of the foregoing conditions are not satisfied, whereupon the redemption will be revoked and the 2022 Notes will remain outstanding.