Refinancing US$850Mn International Bond Critical Issue in Petrotrin Restructuring
Plans are in earnest to refinance Petrotrin’s US$850Mn bond which fall due 2019, with a request for proposals (RFP) expected as soon as next month according to the company’s chairman Wilfred Espinet.
In an effort to curb losses emanating from the company’s operations, Petrotrin in a statement released on August 28, 2018 announced that it will be closing its Pointe-a-Pierre oil refining operations while completely redesigning its Exploration and Production divisions. Refinancing the 2019 international bond, held widely by foreign investors, is seen as one of the key issues facing the company whose refinery operations are scheduled to be closed in two weeks. Estimates are that approximately 3500 permanent workers and another 1200 non-permanent workers will be affected by the closure which is expected to cost the state-owned Oil Company upwards of $1Bn. However, concerns abound that the costs associated with the closure may come out well above the $1Bn estimate due staff related costs such as pension benefits as well as unpaid supplier costs.
With respect to the refinancing plans, Espinet indicated that the company is currently weighing its options, stating further, “we'll issue a request for proposals for refinancing by October. It will take a little time but we anticipate that within the next two months we should have an idea of where we are on the situation.”
Source: Trinidad & Tobago Guardian