PES Holdings, LLC Completes Financial Restructuring and Emerges from Chapter 11

PES Holdings, LLC Completes Financial Restructuring and Emerges from Chapter 11

New Capital Structure Enables PES to Continue Providing Critical Energy Supply in Region

Company Secures $260 Million in Additional Financing and $900 Million Intermediation Facility to Support Operations

Philadelphia, PA. (August 7, 2018) – PES Holdings, LLC (“PES Holdings” or the “Company”), a subsidiary of Philadelphia Energy Solutions LLC (“PES LLC”), announced today that it has completed its financial restructuring process and emerged from Chapter 11 protection following the confirmation of its plan of reorganization (the “Plan”) by the United States Bankruptcy Court for the District of Delaware on March 26, 2018.

Through this financial restructuring process, and per the terms of the Plan, the Company restructured more than $635 million of funded debt while securing access to $260 million in new financing as well as a new $900 million intermediation facility.

“Today marks the successful completion of a process that preserves the jobs of 1,100 hard-working Pennsylvanians and ensures the critical flow of energy to the Northeast U.S.,” said Greg Gatta, Chief Executive Officer of PES LLC. “I thank our employees for their trust and for serving our customers without interruption throughout this process. I also greatly appreciate the support and loyalty of our lenders, customers, suppliers and our Philadelphia community, including the City of Philadelphia, the Commonwealth of Pennsylvania, and the United Steelworkers and Building Trades.”

Gatta continued, “PES has a bright future ahead as the longest continuously operating refinery on the East Coast. We will invest in the refinery, building on the more than $900 million that has been invested in the complex since PES was formed in 2012 to implement world-class refining capabilities.”

The Company’s legal advisor in connection with the restructuring is Kirkland & Ellis LLP. Alvarez & Marsal served as its restructuring advisor and PJT Partners was the Company’s investment banker.

About PES Holdings, LLC

PES Holdings, LLC is the parent company of Philadelphia Energy Solutions Refining and Marketing (“PESRM”). PESRM owns and operates the Point Breeze and Girard Point oil refineries located on an integrated, 1,300-acre refining complex in Philadelphia. The 335,000 barrels per day of combined capacity makes PESRM the largest refining complex on the Eastern Seaboard.

Source: Philadelphia Energy Solutions 

PES Holdings

Cherice Corley, cherice.corley@pes-companies.com, 215.339.7061

Abernathy MacGregor

Kate Murray, KSM@abmac.com, 212.371.5999

Sydney Isaacs, SRI@abmac.com, 713.999.5104