PBF Energy Prices $550M 0% Exchangeable Notes Due 2032 with Capped Call Hedge
PBF has more than doubled off its 52-week low of $25.62 on light trading volume (0.4× avg).
Summary
PBF Energy issued $550 million of 0% exchangeable senior notes due 2032 with an initial exchange price of $96.80 per share, using proceeds to redeem higher-cost 2030 notes and fund capped call hedges.
Key Events · Financing and Capital Events · PBF
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$550M Exchangeable Notes Issued
PBF Holding and PBF Finance issued $550.0 million aggregate principal amount of 0% Exchangeable Senior Notes due 2032, including $50 million from the full exercise of the initial purchasers' option. Net proceeds were approximately $533.6 million.
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Exchange Price Set at $96.80
Initial exchange rate is 10.3306 shares per $1,000 principal amount, equivalent to an initial exchange price of approximately $96.80 per share — a 37.5% premium to the $70.40 last reported sale price on September 14, 2026.
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Capped Call Hedge at $123.20
Capped call transactions cover the shares initially underlying the notes with a cap price of $123.20 per share, representing a 75% premium over the $70.40 reference price. The hedge reduces potential dilution upon exchange up to the cap.
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Proceeds Redeem 2030 Notes
Net proceeds will fund the capped call transactions and redeem in full the outstanding 7.875% senior unsecured notes due 2030, with the remainder for general corporate purposes.
Analysis · PBF · Energy & Transportation
PBF Energy raised $550 million through 0% exchangeable senior notes due 2032, with net proceeds of approximately $533.6 million. The notes carry an initial exchange price of $96.80 per share — a 37.5% premium to the $70.40 reference price at pricing — and are paired with capped call transactions that raise the effective conversion premium to 75% ($123.20 cap). Proceeds will redeem the 7.875% notes due 2030 and fund the capped calls. This is a balance-sheet refinancing that extends maturity to 2032 at zero coupon while minimizing near-term dilution through the hedge. The deal follows a strong Q2 2026 (net income of $915 million) and comes amid heavy insider selling over the past 90 days.
How filings like this one have moved
In the 30 days to Sep 17, 2026, 29.6% of the 1708 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.34%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, PBF was trading at $77.17 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $9.1B. The 52-week trading range was $25.62 to $82.61. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.