PBF Energy Announces $500 Million Exchangeable Notes Offering Due in 2032
PBF Energy Inc., a publicly traded energy company, announced that its subsidiary PBF Holding Company LLC intends to offer up to $500 million of exchangeable notes due in 2032. The offering is structured as a private placement and will be co-issued by another wholly owned subsidiary, PBF Finance Corporation. These senior unsecured obligations are expected to carry semiannual interest payments and include an option for initial purchasers to buy up to $50 million additional notes within 13 days of issuance. The exchangeable notes can be converted into cash or a combination of cash and Class A common stock of PBF Energy under certain conditions. The terms, including the interest rate and exchange price, will be finalized at pricing. Redemption is not permitted before January 20, 2030, except in specific circumstances such as cleanup redemptions when outstanding notes fall below a threshold. The offering includes registration rights for noteholders to facilitate resale of any shares issued upon conversion. PBF Energy also plans to enter into capped call transactions with financial institutions involved in the offering.
Tickers: $PBF
Topics: bond issuance private offering senior unsecured notes