CVR Energy, Inc. - Form 8-K Summary
Business Context and Reporting Period
This Current Report (Form 8-K) was filed by CVR Energy, Inc. on October 16, 2009, regarding an event that occurred on October 8, 2009. The report concerns Coffeyville Resources, LLC, a wholly-owned subsidiary of CVR Energy, Inc.
Key Financial Metrics
The filing does not provide standard financial performance metrics such as revenue, profit, cash flow, or margins. The primary financial impact disclosed relates to liquidity and credit facilities:
- Letter of Credit: A $60 million funded letter of credit supporting commodity price derivative transactions was terminated.
- Credit Linked Deposits: $60 million in credit linked deposits were returned to lenders.
Material Changes
The material change reported is the early termination of commodity price derivative transactions (the "Swap Agreement") with J. Aron & Company, an affiliate of Goldman, Sachs & Co. The agreement, originally dated June 24, 2005, was expected to terminate in 2010. However, an amendment to the Company's credit facility allowed for early termination, and all remaining obligations were completed in advance.
Outlook, Risks, and Commentary
Management commentary indicates that the termination was mutually agreed upon and facilitated by a recent amendment to the Company's credit facility. The filing notes that affiliates of Goldman, Sachs & Co. are significant shareholders of CVR Energy, Inc. No specific forward-looking guidance or new risk factors were disclosed in this report.
Key Facts for Investor Verification
- Verify the impact of the $60 million return of credit linked deposits on the Company's immediate liquidity position.
- Confirm the terms of the credit facility amendment that permitted the early termination of the Swap Agreement.
- Assess the exposure remaining on other commodity price derivative transactions not covered by this termination.