Summary
Phillips 66 (PSX) filed an 8-K on April 21, 2017, reporting the completion of a private offering for $600 million in aggregate principal amount of Floating Rate Notes. This offering includes $300 million in Notes due 2019 and $300 million in Notes due 2020. These notes are fully and unconditionally guaranteed by its wholly-owned subsidiary, Phillips 66 Company. The company intends to use the net proceeds from these notes, along with a portion of expected proceeds from a $900 million term loan, to repay outstanding 2.950% Senior Notes due 2017, fund capital expenditures, and for general corporate purposes. This proactive refinancing and capital allocation strategy aims to strengthen the company's balance sheet and support ongoing operations and growth.
Key Highlights
- 1Completion of a $600 million private offering of Floating Rate Notes (2019 and 2020 maturities).
- 2Notes are guaranteed by subsidiary Phillips 66 Company.
- 3Proceeds will be used to repay $300 million of 2.950% Senior Notes due 2017.
- 4Additional proceeds will fund capital expenditures and general corporate purposes.
- 5Expected to concurrently enter into a $900 million term loan facility.
- 6Possibility for Phillips 66 Partners LP to issue Exchange Notes in lieu of the issued Notes, subject to certain conditions.