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Announcement: Moody's says Par Petroleum's equity offering is credit positive but does not affect ratingsGlobal Credit Research - 16 Mar 2021New York, March 16, 2021 -- Moody's Investors Service, ("Moody's") commented today that Par Pacific Holdings, Inc.'s (the parent company of Par Petroleum, LLC) equity offering is credit positive but does not affect ratings or the negative outlook, including Par Petroleum, LLC's (Par) B1 Corporate Family Rating and B1 senior secured debt ratings. The company is offering 5 million shares of common stock (about $96 million based on Monday's closing price) and have granted the underwriters an option to purchase an additional 750,000 shares from the company. Net proceeds are slated for general corporate purposes, including repaying debt, capital expenditures, and working capital. This transaction further improves Par's liquidity following several other steps recently that enhanced liquidity and enabled debt repayment.On February 11, Par announced a sale-leaseback transaction of 22 Hawaii retail convenience store/fuel station properties for $116 million. The company used about $53 million of the proceeds to repay debt and associated obligations related to certain of the properties. On the same day, Par also announced the extension to the end of March 2022 of one of its inventory financing agreements (specifically, the one that supports the Washington refinery). Par has another inventory financing agreement that expires in May 2021 that supports the company's Hawaii refineries. The company expects to address this facility prior to expiration. The company's next debt maturity is that of its $49 million convertible senior notes due June 2021. On March 10, the company gave notice to settle all conversions with the delivery of common stock for all conversion occurring on or after March 15.Par's credit metrics weakened considerably in 2020 on negative EBITDA as the company contended with reduced demand for refined products and lower crack spreads. Moody's expects Par's EBITDA will turnaround in 2021 resulting in improving credit metrics as refined products demand continues to return, crack spreads normalize and the company retains its lower cost structure.Par Petroleum, LLC (Par), headquartered in Houston, Texas, is a wholly owned subsidiary of Par Pacific Holdings, Inc., a publicly traded energy company with refining, retail and logistics operations across several states including Hawaii, Washington and Wyoming.Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. Jonathan Teitel, CFA Asst Vice President - Analyst Corporate Finance Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Steven Wood MD - Corporate Finance Corporate Finance Group JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 © 2021 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). 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