Valero Energy Corporation Announces Pricing of Notes Offering

Rhea-AI Summary

Valero Energy Corporation (NYSE: VLO) has priced a public offering of $650,000,000 aggregate principal amount of 4.000% Senior Notes due 2052. The offering is expected to close on February 7, 2022, pending customary closing conditions. Valero plans to use the net proceeds from this offering to finance cash tender offers to repurchase several outstanding Senior Notes and for general corporate purposes. J.P. Morgan Securities LLC, BofA Securities, Inc., Scotia Capital (USA) Inc., and Wells Fargo Securities, LLC acted as joint book-running managers for the offering.

Positive

• Successful pricing of $650 million in Senior Notes indicates strong investor interest.
• Proceeds will be used for refinancing existing debt, potentially lowering interest expenses.

Negative

• Issuing new debt increases overall leverage, which might concern investors about financial stability.

SAN ANTONIO--(BUSINESS WIRE)-- Valero Energy Corporation (NYSE: VLO, “Valero”) announced today that it has priced a public offering of $650,000,000 aggregate principal amount of 4.000% Senior Notes due 2052 (the “Notes”).

The offering is expected to close on February 7, 2022, subject to customary closing conditions. Valero intends to use the net proceeds from the offering, together with cash on hand, to finance its cash tender offers (the “Tender Offers”) to repurchase its outstanding 3.650% Senior Notes due 2025, 2.850% Senior Notes due 2025, 3.400% Senior Notes due 2026, 2.150% Senior Notes due 2027 and 4.350% Senior Notes due 2028, and the 4.375% Senior Notes due 2026 and 4.500% Senior Notes due 2028 issued by Valero Energy Partners LP and guaranteed by Valero. In the event that there are any net proceeds from this offering that are not used to finance the Tender Offers, Valero anticipates using such net proceeds for general corporate purposes.

J.P. Morgan Securities LLC, BofA Securities, Inc., Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC acted as joint book-running managers for the offering.

Copies of the prospectus supplement and accompanying base prospectus relating to the offering may be obtained from J.P. Morgan Securities LLC collect at 1 (212) 834-4533, BofA Securities, Inc. at 1 (800) 294-1322, Scotia Capital (USA) Inc. at 1 (800) 372-3930 and Wells Fargo Securities, LLC at 1 (800) 645-3751 and online at www.sec.gov.

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.

The Notes were offered and will be sold pursuant to an effective shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission, and only by means of a prospectus supplement and accompanying base prospectus. This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220202005915/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 purpose of Valero's recent $650 million Senior Notes offering?

Valero aims to use the proceeds to finance cash tender offers for outstanding Senior Notes and for general corporate purposes.

When is the closing date for Valero's Senior Notes offering?

The offering is expected to close on February 7, 2022, subject to customary closing conditions.

What is Valero's stock symbol?

Valero Energy Corporation is traded under the stock symbol VLO.

Who managed the pricing for Valero's Senior Notes offering?

The offering was managed by J.P. Morgan Securities LLC, BofA Securities, Inc., Scotia Capital (USA) Inc., and Wells Fargo Securities, LLC.