Valero Energy Corporation Announces the Redemption of Floating Rate Senior Notes Due 2023

Rhea-AI Summary

Valero Energy Corporation (NYSE: VLO) announced its plans to redeem $575 million of its Floating Rate Senior Notes due 2023 on September 27, 2021. This initiative is part of Valero's strategy to reduce its debt. The redemption price will equal 100% of the principal amount plus accrued interest. Valero intends to use cash on hand for this transaction. A notice of redemption will be sent to all registered holders of the Notes by U.S. Bank National Association, the Trustee.

Positive

• Valero plans to redeem $575 million of debt, enhancing financial stability.
• The redemption reflects a proactive approach to reduce interest obligations.

Negative

• None.

SAN ANTONIO--(BUSINESS WIRE)-- Valero Energy Corporation (NYSE: VLO) announced today that it will redeem the entire outstanding principal amount of its Floating Rate Senior Notes due 2023 (the “Notes”) as part of its previously announced plans to reduce debt. The redemption date for the Notes is September 27, 2021. The aggregate principal amount of the Notes outstanding is $575 million. The redemption price for the Notes will be equal to 100% of the principal amount of the Notes outstanding, plus accrued and unpaid interest thereon to, but not including, the redemption date. Valero plans to use cash on hand to fund the redemption of the Notes.

A notice of redemption is being sent to all currently registered holders of the Notes by the Trustee, U.S. Bank National Association.

This press release is not an offer to sell or a solicitation of an offer to buy any securities.

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 it owns 15 petroleum refineries with a combined throughput capacity of approximately 3.2 million barrels per day and 13 ethanol plants with a combined production capacity of approximately 1.7 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 is 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. Please visit www.investorvalero.com for more information.

Safe-Harbor Statement

Statements contained in this release that state Valero’s or 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 forward-looking statements in this release include Valero’s plans to reduce debt, the expected timing and terms of redemption of the Notes and the source of funding for the redemption. 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 the company’s control, such as circumstances and events that could impact liquidity and other factors. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual report on Form 10-K, quarterly reports on Form 10-Q, and other reports filed with the Securities and Exchange Commission and available on Valero’s website at www.valero.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210827005240/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

When will Valero redeem its Floating Rate Senior Notes?

Valero will redeem its Floating Rate Senior Notes on September 27, 2021.

What is the total amount of Valero's Senior Notes being redeemed?

Valero is redeeming a total of $575 million of its Floating Rate Senior Notes.

How will Valero fund the redemption of the Senior Notes?

Valero plans to use cash on hand to fund the redemption of the Senior Notes.

Who is the Trustee sending the notice of redemption for Valero's Notes?

The notice of redemption will be sent by U.S. Bank National Association, the Trustee.