Oil refiner Caltex has raised $550 million from investors to help fund a restructure that includes the overhaul of its Sydney oil refinery.

Caltex had sold $525 million in subordinated notes, priced at $100 each, to institutional investors and brokers, and a further $25 million of notes to other investors, it said on Wednesday.

The company says it will use the proceeds to pay down debt and fund planned changes to its supply chain that were announced in July.

That includes converting its loss-making Sydney oil refinery into a fuel import terminal, which will cost an estimated $680 million and result in the loss of hundreds of jobs.

“This capital raising, together with our previously announced temporary reduction in our dividend payout ratio, will provide financial flexibility as Caltex executes its growth plans and implements its supply chain restructure, including the proposal to close the Kurnell refinery and convert it to a major import terminal,” chief financial officer Simon Hepworth said in a statement.