SAN ANTONIO -- Tesoro Corp. has announced that it has completed the redemption of all of its outstanding $299 million 6.25% senior notes due November 2012.
On Sept. 13, 2012, the company priced $450 million 4.25% senior notes due 2017 and $475 million 5.375% senior notes due 2022.
The company will use net proceeds from that offering, expected to be completed on Sept. 27, 2012, and cash on hand, to fund its cash tender offers for the repurchase of any and all of its outstanding 6.625% senior notes due 2015 and 6.5% senior notes due 2017.
The redemption of the 2012 notes and the refinancing of the 2015 and 2017 notes reduces interest expense, extends maturities and further strengthens Tesoro's balance sheet, the company said.
Tesoro, based in San Antonio, is an independent refiner and marketer of petroleum products. Tesoro, through its subsidiaries, operates seven refineries in the western United States with a combined capacity of approximately 675,000 barrels per day. Its retail-marketing system includes more than 1,375 branded retail stations, of which nearly 590 are company operated under the Tesoro, Shell and USA Gasoline brands.
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