* $1 bln loan has a rate of Libor +800 bp, 5-year term
* Citgo puts $750 mln in terminals, pipelines as guarantees (Updates with debt rating, financial details)
HOUSTON, Jan 22 (Reuters) - Citgo Petroleum confirmed on Thursday that its assets are no longer for sale after parent company PDVSA of Venezuela cancelled the offering, despite receiving several bids, according to Thomson Reuters IFR.
At a conference held for investors, Citgo officials also announced details of a plan to raise $2.5 billion through a mix of bonds and a loan.
The money will be transferred to state-run PDVSA, which is suffering a cash shortfall because of falling oil prices. PDVSA traditionally generates 96 percent of the country's hard currency earnings.
The $1 billion senior secured loan being proposed has a rate of Libor +800 basis points and a five-year term, Citgo said in New York, according to IFR.
The credit will be secured by $750 million in midstream assets, including terminals and pipelines, and a 49 percent pledge on Citgo's equity.
The company's directors specifically mentioned four pipelines and terminals located in Illinois, New Jersey, New York and Ohio as guarantees.
On Thursday, Moody's assigned weak ratings of Caa1 to Citgo Holding and a Caa1, LGD4 rating to its proposed loan and notes, both due in 2020. The outlook on the ratings was maintained as stable.
Moody's added that Citgo distributed $704 million in dividends during the last 12 months ending in September 2014, and its total unadjusted debt was $1.7 billion at the close of the quarter.
Citgo's 750,000-barrel-per-day refining network was not included as collateral, but the unit will create a debt service reserve to cover six months of interest payments, and it has to maintain its debt to capitalization ratio below 75 percent.
The debt transaction would provide temporary relief to PDVSA and allow it to avoid having to sell overseas assets in the short term.
Deutsche Bank is managing the debt operation. Details on the bonds will be provided next week. (Reporting by Marianna Parraga and Davide Scigliuzzo; Writing by Terry Wade; Editing by Jessica Resnick-Ault, Paul Simao and Andre Grenon)