UPDATE 2-Citgo Petroleum confirms assets no longer for sale -IFR
* $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. Continuación...