PBF Energy Announces Intention to Offer $750 Million of Senior Notes due 2030

Rhea-AI Summary

PBF Energy (NYSE:PBF) has announced plans to offer $750 million in senior notes due 2030 through its indirect subsidiary, PBF Holding Company The notes will be co-issued by PBF Finance and offered in a private placement to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S.

The proceeds from this offering will be used to repay outstanding borrowings under the company's asset-based revolving credit facility and for general corporate purposes. The offering is subject to market conditions and will only be available to qualified investors through a private offering memorandum.

Positive

• Debt refinancing initiative through $750 million senior notes offering
• Potential improvement in debt structure through revolving credit facility repayment

Negative

• Increase in long-term debt obligations with new $750 million notes
• Additional interest expense burden from new senior notes

Insights

Financial Analyst

PBF Energy's planned $750 million senior notes offering represents a significant debt refinancing move that warrants investor attention. This transaction appears primarily focused on liability management rather than expanding capital expenditures, as proceeds will repay outstanding borrowings on their asset-based revolving credit facility.

The 2030 maturity suggests PBF is extending its debt profile, potentially reducing near-term refinancing pressures by replacing shorter-term revolving debt with longer-term fixed obligations. This could enhance financial stability by locking in financing for approximately 5 years in the currently volatile energy sector.

However, this offering doesn't reduce PBF's overall debt burden but rather restructures it. The absence of disclosed interest rates makes it impossible to evaluate the cost implications compared to existing facilities. The vague reference to "general corporate purposes" for remaining proceeds provides insight into strategic priorities.

For context, this $750 million offering represents approximately 32% of PBF's current market capitalization of $2.35 billion, indicating a significant financial transaction relative to the company's equity value. Investors should monitor final pricing terms and ultimate impact on interest expenses once the offering completes.

PARSIPPANY, N.J., March 12, 2025 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) ("PBF Energy") today announced that its indirect subsidiary, PBF Holding Company LLC ("PBF Holding"), intends to offer, subject to market and other conditions, $750 million in aggregate principal amount of senior notes due 2030 (the "Notes") in a private offering. The Notes will be co-issued by PBF Finance Corporation, a wholly owned subsidiary of PBF Holding. Completion of the offering is subject to, among other things, pricing and market conditions. PBF Holding intends to use the net proceeds from the proposed offering to repay outstanding borrowings under its asset based revolving credit facility and for general corporate purposes.

The Notes will be offered in a private placement and are expected to be resold by the initial purchasers to qualified institutional buyers under Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The offer of the Notes will be made only by means of a private offering memorandum to qualified investors and has not been and will not be registered under the Securities Act or any applicable state securities laws, and the Notes may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements of the Securities Act.

This press release is being issued pursuant to Rule 135c under the Securities Act, and is neither an offer to sell nor a solicitation of an offer to buy the Notes and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of any Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, qualification or exemption under the securities laws of any such jurisdiction.

Forward-Looking Statements
Statements in this press release relating to future plans, results, performance, expectations, achievements and the like are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, the risks relating to the proposed offering, the proposed redemption, the securities markets generally and the company's expectations with respect to the timing and size of the proposed offering and the anticipated use of proceeds therefrom. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which may be beyond the company's control, that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors and uncertainties that may cause actual results to differ include but are not limited to the risks disclosed in the company's filings with the SEC. All forward-looking statements speak only as of the date hereof. The company undertakes no obligation to revise or update any forward-looking statements except as may be required by applicable securities laws.

About PBF Energy Inc.
PBF Energy Inc. (NYSE:PBF) is one of the largest independent refiners in North America, operating, through its subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New Jersey and Ohio. Our mission is to operate our facilities in a safe, reliable and environmentally responsible manner, provide employees with a safe and rewarding workplace, become a positive influence in the communities where we do business, and provide superior returns to our investors.

PBF Energy is also a 50% partner in the St. Bernard Renewables joint venture focused on the production of next generation sustainable fuels.

Contacts:
Colin Murray (investors)
ir@pbfenergy.com
Tel: 973.455.7578

Michael C. Karlovich (media)
mediarelations@pbfenergy.com
Tel: 973.455.8981

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SOURCE PBF Energy Inc.

FAQ

What is the size and purpose of PBF Energy's 2030 senior notes offering?

PBF Energy is offering $750 million in senior notes due 2030, with proceeds intended to repay outstanding borrowings under its asset-based revolving credit facility and for general corporate purposes.

Who are the eligible investors for PBF's 2030 senior notes offering?

The notes are available to qualified institutional buyers under Rule 144A and non-U.S. persons outside the United States under Regulation S through a private placement.

When will PBF Energy's senior notes mature?

The senior notes being offered by PBF Energy will mature in 2030.

How will PBF Energy use the proceeds from the 2030 notes offering?

PBF Energy plans to use the net proceeds to repay outstanding borrowings under its asset-based revolving credit facility and for general corporate purposes.