PBF Energy plans $750 million senior notes offering

PARSIPPANY, N.J. - PBF Energy Inc. (NYSE:PBF) has announced its intention to offer $750 million in senior notes due in 2030 through its subsidiary, PBF Holding Company LLC. The offering comes as the company manages its $2.31 billion debt load, which according to InvestingPro analysis, represents a significant burden on its balance sheet. The offering, which will also involve PBF Finance Corporation, is contingent on market conditions and pricing.

The proposed private placement targets qualified institutional buyers, adhering to the Securities Act of 1933’s Rule 144A and Regulation S for non-U.S. persons. The notes will not be publicly offered in the United States without registration or an applicable exemption.

PBF Holding aims to allocate the net proceeds from this offering to reduce debt under its asset-based revolving credit facility and for general corporate purposes.

This announcement comes amid a period of caution in the financial markets, with PBF Energy’s forward-looking statements acknowledging the inherent risks and uncertainties. The company has clarified that actual outcomes could vary significantly due to factors beyond its control.

PBF Energy, a prominent independent refiner in North America with $33.1 billion in revenue, runs refineries across multiple states and is known for its commitment to safety, environmental responsibility, community engagement, and investor returns. The company is also involved in renewable energy ventures, holding a 50% stake in St. Bernard Renewables. According to InvestingPro analysis, the stock appears undervalued based on their proprietary Fair Value model, with 12 additional ProTips available to subscribers.

The information in this article is based on a press release statement from PBF Energy.

In other recent news, PBF Energy faced a challenging fourth quarter of 2024, reporting earnings per share of -$2.82, which fell short of the forecasted -$1.97. The company’s revenue also missed expectations, coming in at $7.35 billion against a projected $7.76 billion. This was partly due to operational disruptions, including a fire at the Martinez refinery, which has been offline since February 1, 2025. As a result, PBF Energy has announced plans to restart the refinery in stages, with some units expected to be operational by early in the second quarter of 2025.

The financial impact of the Martinez refinery’s shutdown is significant, with TD Cowen estimating a potential $100 million financial headwind if the facility remains closed for the entire first quarter. Analysts at JPMorgan and TD Cowen have reacted to these challenges by adjusting their price targets for PBF Energy, with JPMorgan lowering its target to $31 from $35 and TD Cowen reducing it to $19 from $20. Despite these setbacks, PBF Energy expects insurance to cover the majority of the repair costs and business interruptions.

The company is also focusing on a $200 million business improvement plan aimed at cost savings, with significant opportunities identified in energy usage and turnaround. PBF Energy’s management has emphasized their commitment to maintaining a strong balance sheet, which has been under pressure due to increased net debt and the operational challenges at the Martinez refinery. These recent developments underscore the financial and operational hurdles the company is navigating as it works to restore full operations and improve its financial standing.

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