Valero Energy Continues to Reduce Debt Through Mandatory Tender of $300 Million of GO Zone Bonds

Rhea-AI Summary

Valero Energy Corporation (NYSE: VLO) has successfully reduced its debt by approximately $300 million through the acquisition of 4.00 percent Gulf Opportunity Zone Revenue Bonds Series 2010. This reduction follows earlier refinancing efforts, bringing the total debt reduction to about $2.3 billion since the third quarter of 2021. The GO Zone Bonds are due on December 1, 2040 and were subject to mandatory tender on June 1, 2022.

Positive

• Debt reduced by approximately $300 million through GO Zone Bonds acquisition.
• Total debt reduction reached about $2.3 billion since Q3 2021.

Negative

• None.

SAN ANTONIO--(BUSINESS WIRE)-- Valero Energy Corporation (NYSE: VLO, “Valero”) reduced its debt by approximately $300 million through the acquisition of $300 million of 4.00 percent Gulf Opportunity Zone Revenue Bonds Series 2010 (“GO Zone Bonds”). As previously disclosed, the GO Zone Bonds are due December 1, 2040, but were subject to mandatory tender on June 1, 2022 (the “Mandatory Tender Date”) at a price equal to par plus accrued and unpaid interest up to, but excluding, the Mandatory Tender Date.

This transaction, combined with debt reduction and refinancing transactions completed in the third and fourth quarters of 2021, and the first quarter of 2022, collectively reduced Valero’s debt by approximately $2.3 billion.

About Valero

We are a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and we sell our products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland, and Latin America. We own 15 petroleum refineries located in the U.S., Canada, and the U.K. with a combined throughput capacity of approximately 3.2 million barrels per day (BPD). We are a joint venture member in Diamond Green Diesel Holdings LLC (DGD), which owns a renewable diesel plant in Norco, Louisiana with a production capacity of 700 million gallons per year, and we own 12 ethanol plants located in the Mid-Continent region of the U.S. with a combined production capacity of approximately 1.6 billion gallons per year. We manage our operations through our Refining, Renewable Diesel, and Ethanol segments. Please visit www.investorvalero.com for more information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220601006219/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

What recent debt reduction did Valero Energy Corporation announce?

Valero announced a debt reduction of approximately $300 million through the acquisition of GO Zone Bonds.

What is the total debt reduction for Valero since 2021?

Valero's total debt reduction since the third quarter of 2021 is about $2.3 billion.

When are the GO Zone Bonds due?

The GO Zone Bonds are due on December 1, 2040.

What was the interest rate on the GO Zone Bonds acquired by Valero?

The GO Zone Bonds had an interest rate of 4.00 percent.