CST Brands to roadshow $550 million 10-year senior notes next week

By Paul A. Harris

Portland, Ore., April 19 - CST Brands, Inc. plans to conduct a roadshow for a $550 million offering of 10-year senior notes during the April 22 week, according to a syndicate source.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Mitsubishi UFJ, RBC Capital Markets and RBS Securities are the joint bookrunners for the Rule 144A and Regulation S with registration rights offer.

The notes come with five years of call protection, and feature a three-year 35% equity clawback and a 101% poison put.

Proceeds will be used to fund a distribution to Valero Energy Corp. as part of the tax-free spinoff of Valero's retail business that will create CST Brands.

The prospective issuer is a San Antonio-based independent North American retailer of transportation fuels and convenience merchandise.

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