Corral Petroleum Holdings AB (publ) Announces the Completion of its Long-Term Refinancing

LONDON, September 15, 2011 /PRNewswire/ --

NOT FOR DISTRIBUTION IN CANADA, JAPAN OR AUSTRALIA.

Corral Petroleum Holdings AB (publ) ("Corral") announced today that it completed its previously announced long-term refinancing yesterday.  

The key elements of that refinancing included:

• A contribution by Corral's ultimate shareholder of circa 600 MUSD to the Group;

• A refinancing in full of Preem's existing credit facilities with new facilities provided by a syndicate consisting of Merchant Banking, Skandinaviska Enskilda Banken AB (publ), Handelsbanken Capital Markets, Svenska Handelsbanken AB (publ), Danske Bank A/S, Danmark, Sweden Branch, Swedbank AB (publ), Nordea Bank AB (publ) and DnB NOR Bank ASA comprised of:

• A five-year 1,777 MUSD equivalent multi-currency committed revolving working capital facility, and

• A five-year 650 MUSD equivalent multi-currency amortising term loan;  

• The issuance by Corral of approximately €135.6 million in original principal amount of 15% Senior Euro Notes due 2017 and approximately $168.5 million in original principal amount of 15% Senior Dollar Notes due 2017 (collectively, the "New Notes"), together with $300 million of cash consideration, in exchange for Corral's existing Varying Rate Senior Secured Notes due 2011 (the "Existing Notes"); and

• An extension of the maturity of Corral's varying rate subordinated notes due 2015 to December 31, 2019.

Corral expects to repay any Existing Notes (together with accrued interest up to but excluding the maturity date) that were not validly tendered in the exchange offer and consent solicitation at maturity, on September 19, 2011.

As a result of this refinancing, the Group has significantly strengthened its balance sheet, has improved access to liquidity to operate in a range of oil price environments and during turnaround periods and benefits from a stable long term capital structure.

SOURCE:  Corral Petroleum Holdings AB (publ).

The New Notes have not been registered under the U.S. Securities Act of 1933, as amended, (the "Securities Act") and unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws.

This press release shall not constitute an offer or solicitation to purchase or a solicitation of consents with respect to any securities. Any such offer or solicitation will be made only by means of the exchange offer memorandum and consent solicitation statement dated August 11, 2011.

This release is for informational purposes only and is neither an offer to exchange nor a solicitation of an offer to exchange the Existing Notes.

In addition, this press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements.  We have based these forward-looking statements on our current expectations and projections about future events.  Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.  These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative, or other variations or comparable terminology.  These forward-looking statements include all matters that are not historical facts.  They appear in a number of places throughout this press release and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future.  We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, our financial condition and liquidity, and the development of the industry in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this press release.  In addition, even if our results of operations, our financial condition and liquidity, and the development of the industry in which we operate, are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results, conditions or developments in subsequent periods.  Important factors that could cause those differences include, but are not limited to:  (i) our substantial indebtedness and limitations on our operational flexibility arising under agreements governing our debt; (ii) volatility in refining margins and in market prices for crude oil and refined products; (iii) changes in global economic conditions and capital markets; (iv) our ability to obtain sufficient short-term credit to finance our spot market crude oil purchases and long-term credit to finance our future capital expenditures; (v) the competitive nature of our industry; (vi) operational hazards and our dependence on key refinery assets; (vii) our ability to comply with existing or newly implemented environmental regimes in the countries in which we operate; (viii) our liability for violations, known and unknown, under environmental, occupational health and safety, and other laws; (ix) our ability to remediate contaminated sites within budgeted amounts; (x) our ability to hedge against currency, commodity and interest rate risks; (xi) loss of key management; (xii) labour disruptions; and (xiii) economic disruptions in the countries in which we, our suppliers and our customers operate.

In light of these risks, uncertainties and assumptions, the forward-looking events described in this press release may not occur.

All forward-looking statements attributable to us are expressly qualified in their entirety by these cautionary statements.  We undertake no obligation to publicly update or publicly revise any forward-looking statements, whether as a result of new information, future events or otherwise.  All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in this press release.

For further information, please contact:

Magnus Heimburg
Tel:  +46-10-450 10 44
Email: [email protected]

Media Enquiries - M: Communications

Louise Tingström
Office: +44 20 7923 2337
Mobile: +44 7899 066 995
Email: [email protected]

SOURCE Corral Petroleum Holdings AB

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