Valero Energy Continues to Reduce Long-Term Debt Through Previously Announced Series of Debt Reduction and Refinancing Transactions

Rhea-AI Summary

Valero Energy Corporation (NYSE: VLO) announced a significant reduction in its long-term debt by approximately $750 million in February, facilitated through a debt reduction and refinancing strategy. This involved issuing $650 million in Senior Notes due 2052 and using proceeds and cash to repurchase about $1.4 billion of its senior notes. To date, these moves have collectively cut Valero's long-term debt by roughly $2.0 billion, enhancing its financial position.

Positive

• Reduced long-term debt by approximately $750 million.
• Total long-term debt reduced by about $2.0 billion since late 2021.
• Strategic refinancing enhances financial stability.

Negative

• None.

SAN ANTONIO--(BUSINESS WIRE)-- Valero Energy Corporation (NYSE: VLO, “Valero”) reduced its long-term debt by approximately $750 million in February through the previously announced debt reduction and refinancing transactions. The transactions included the issuance of $650 million aggregate principal amount of 4.000% Senior Notes due 2052 (the “Notes Issuance”) and the use of the proceeds from the Notes Issuance and cash on hand to repurchase and retire approximately $1.4 billion aggregate principal amount of various series of Valero’s senior notes.

These transactions, combined with debt reduction and refinancing transactions completed in the third and fourth quarters of 2021, collectively reduced Valero’s long-term debt by approximately $2.0 billion.

About Valero

Valero Energy Corporation, through its subsidiaries (collectively, “Valero”), is an international manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and sells its products primarily in the United States (“U.S.”), Canada, the United Kingdom (“U.K.”), Ireland and Latin America. Valero owns 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. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which owns a renewable diesel plant in Norco, Louisiana with a production capacity of 700 million gallons per year, and Valero owns 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. Valero manages its operations through its 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/20220221005285/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 is the recent debt reduction amount reported by Valero Energy Corporation?

Valero Energy Corporation has reduced its long-term debt by approximately $750 million.

How much total long-term debt has Valero reduced since 2021?

Valero has collectively reduced its long-term debt by about $2.0 billion since the third quarter of 2021.

What financing method did Valero use for its recent debt reduction?

Valero issued $650 million in Senior Notes due 2052 and used the proceeds along with cash on hand.