By Cristal Cody
Tupelo, Miss., April 14 – Valero Energy Corp. priced $1.5 billion of senior notes (Baa2/BBB/BBB) in two parts on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $850 million of 2.7% three-year notes at 99.889 to yield 2.739%, or a spread of Treasuries plus 245 basis points.
A $650 million tranche of 2.85% five-year notes priced at 99.926 to yield 2.866% and a Treasuries plus 245 bps spread.
The three- and five-year notes were talked to price in the Treasuries plus 300 bps area.
BofA Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments, Inc. were the bookrunners.
Proceeds will be used for general corporate purposes.
San Antonio-based Valero is an oil refinery owner and operator.
| Issuer: | Valero Energy Corp.
|
| Amount: | $1.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments, Inc.
|
| Trade date: | April 14
|
| Settlement date: | April 16
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $850 million
|
| Maturity: | April 15, 2023
|
| Coupon: | 2.7%
|
| Price: | 99.889
|
| Yield: | 2.739%
|
| Spread: | Treasuries plus 245 bps
|
| Call feature: | Make-whole call at Treasuries plus 40 bps
|
| Price guidance: | Treasuries plus 300 bps area
|
|
|
| Five-year notes
|
| Amount: | $650 million
|
| Maturity: | April 15, 2025
|
| Coupon: | 2.85%
|
| Price: | 99.926
|
| Yield: | 2.866%
|
| Spread: | Treasuries plus 245 bps
|
| Call features: | Make-whole call at Treasuries plus 40 bps before March 15, 2025; thereafter at par
|
| Price guidance: | Treasuries plus 300 bps area
|
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