Par Pacific Holdings Announces Pricing of Private Offering of $105 Million of 12.875% Senior Secured Notes Due 2026

HOUSTON, May 27, 2020 (GLOBE NEWSWIRE) -- Par Pacific Holdings, Inc. (NYSE: PARR) (“Par Pacific” or the “Company”) today announced that Par Petroleum, LLC (“Par Petroleum”) and Par Petroleum Finance Corp. (“Finance Corp.” and together with Par Petroleum, the “Issuers”), both wholly-owned subsidiaries of the Company, priced a private offering of $105 million aggregate principal amount of 12.875% senior secured notes due 2026 (the “Notes”). The Notes are being offered in a private offering only to qualified institutional buyers pursuant to Rule 144A and to certain persons outside of the United States pursuant to Regulation S, each under the Securities Act of 1933, as amended (the “Act”). The offering is expected to close on June 5, 2020, subject to customary closing conditions.

The Notes will be secured, senior obligations of the Issuers, and interest will be payable semi-annually in arrears. The Notes will be guaranteed on a senior secured basis by Par Petroleum’s existing and certain future domestic restricted subsidiaries (excluding Finance Corp.) and on a senior unsecured basis only as to the payment of principal and interest by the Company. The Notes will be secured on a pari passu basis with the same collateral that secures the Issuers’ existing 7.750% Senior Secured Notes due 2025 and the Issuers’ existing Term Loan B facility, which consists of first-priority security interests in substantially all of the assets of the Issuers and the subsidiary guarantors, other than assets constituting collateral for the supply and offtake agreements with J. Aron & Company LLC, assets constituting collateral for the asset-based secured revolving credit facility with Bank of America, N.A., assets constituting collateral for intermediation arrangement with Merrill Lynch Commodities, Inc. and certain excluded properties.

The Issuers intend to use the net proceeds of the offering for general corporate purposes.

“We are pleased with this offering,” stated William Pate, the Company’s President and Chief Executive Officer. “We place a premium value on liquidity in this uncertain environment. While we believe we currently have adequate levels of liquidity across the Company, we took this step to ensure that we have additional capital in the event of an extended turnaround, an unplanned outage, or adverse volatility as the economy begins to ramp up in the aftermath of the government-mandated shutdown of travel and other activities.”