Valero Energy Completes Previously Announced Series of Debt Reduction and Refinancing Transactions

Rhea-AI Summary

Valero Energy Corporation (NYSE: VLO) has successfully completed debt reduction and refinancing transactions, reducing its long-term debt by approximately $1.3 billion. This includes issuing $500 million of 2.800% Senior Notes due 2031 and $950 million of 3.650% Senior Notes due 2051. The proceeds, along with cash reserves, were used to repurchase around $2.1 billion of various senior notes and redeem $575 million of Floating Rate Senior Notes due 2023.

Positive

• Reduction of long-term debt by approximately $1.3 billion.
• Successful issuance of $500 million 2.800% Senior Notes and $950 million 3.650% Senior Notes.

Negative

• None.

SAN ANTONIO--(BUSINESS WIRE)-- Valero Energy Corporation (NYSE: VLO, “Valero”) announced today the completion of the previously announced debt reduction and refinancing transactions that together reduced Valero’s long-term debt by approximately $700 million. The debt reduction and refinancing transactions included the issuance of $500 million aggregate principal amount of 2.800% Senior Notes due 2031 and $950 million aggregate principal amount of 3.650% Senior Notes due 2051 (the “Notes Issuance”) and the use of the proceeds from the Notes Issuance and cash on hand to repurchase and retire approximately $2.1 billion aggregate principal amount of various series of Valero’s senior notes and to redeem all of Valero’s 2.700% Senior Notes due 2023.

The debt reduction and refinancing transactions, combined with the redemption of the $575 million aggregate principal amount of Floating Rate Senior Notes due 2023 in the third quarter, collectively reduced Valero’s long-term debt by approximately $1.3 billion.

Safe-Harbor Statement

Statements contained in this press release that state Valero’s or its management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “anticipate,” “believe,” “expect,” “plan,” “intend,” “scheduled,” “estimate,” “project,” “projection,” “predict,” “budget,” “forecast,” “goal,” “guidance,” “target,” “could,” “would,” “should,” “may,” “strive,” “seek,” “potential,” “opportunity,” “aimed,” “considering,” “continue,” and similar expressions identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those outside of Valero’s control, such as legislative or political changes or developments, market dynamics, cyberattacks, weather events, and other matters affecting our operations or the demand for our products. These factors also include, but are not limited to, the uncertainties that remain with respect to the COVID-19 pandemic, variants of the virus, governmental and societal responses thereto, including requirements and mandates with respect to vaccines, vaccine distribution and administration levels, and the adverse effects the foregoing may have on our business or economic conditions generally. For more information concerning these and other factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual report on Form 10-K, the “Risk Factors” section included in the Offer to Purchase, quarterly reports on Form 10-Q, and other reports filed with the Securities and Exchange Commission.

About Valero

Valero Energy Corporation, through its subsidiaries (collectively, “Valero”), is an international manufacturer and marketer of transportation fuels and petrochemical products. Valero is a Fortune 500 company based in San Antonio, Texas, and owns 15 petroleum refineries with a combined throughput capacity of approximately 3.2 million barrels per day and 12 ethanol plants with a combined production capacity of approximately 1.6 billion gallons per year. The petroleum refineries are located in the United States (U.S.), Canada and the United Kingdom (U.K.), and the ethanol plants are located in the Mid-Continent region of the U.S. Valero is also a joint venture partner in Diamond Green Diesel, which owns and operates a renewable diesel plant in Norco, Louisiana. Diamond Green Diesel owns North America’s largest biomass-based diesel plant. Valero sells its products in the wholesale rack or bulk markets in the U.S., Canada, the U.K., Ireland and Latin America. Approximately 7,000 outlets carry Valero’s brand names.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211229005311/en/

Investors:

Homer Bhullar, Vice President – Investor Relations and Finance, 210-345-1982

Eric Herbort, Senior Manager – Investor Relations, 210-345-3331

Gautam Srivastava, Senior Manager – Investor Relations, 210-345-3992

Media:

Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002

Source: Valero Energy Corporation

FAQ

How much long-term debt did Valero Energy Corporation reduce?

Valero Energy Corporation reduced its long-term debt by approximately $1.3 billion.

What new senior notes did Valero issue?

Valero issued $500 million of 2.800% Senior Notes due 2031 and $950 million of 3.650% Senior Notes due 2051.

What was the total principal amount repurchased by Valero?

Valero repurchased and retired approximately $2.1 billion of various series of senior notes.

What was redeemed in Q3 by Valero Energy Corporation?

Valero redeemed $575 million of Floating Rate Senior Notes due 2023.