PBF Holding prices $500 million zero-coupon exchangeable notes due 2032
The notes carry an initial exchange price of about $96.80 a share, a 37.5% premium to PBF Energy's $70.40 close on September 14, 2026
Published
PBF Holding Company, an indirect subsidiary of PBF Energy, has priced a private offering of $500 million in senior unsecured exchangeable notes due 2032. PBF Finance Corporation is co-issuer. Initial purchasers have an option to buy up to an additional $50 million of the notes.
PBF expects net proceeds of about $485.0 million. The company plans to use the money to fund capped call transactions and to repay or redeem all of its outstanding 7.875% senior unsecured notes due 2030.
The deal replaces debt due in 2030 with debt due in 2032 and removes the 7.875% coupon on the notes being redeemed, cutting annual interest expense. The 37.5% exchange premium and the capped calls limit how much dilution shareholders would face if the stock rises far enough to make exchange attractive, while giving PBF Holding cheaper, longer-dated financing.