By Cristal Cody
Tupelo, Miss., Sept. 8 – Valero Energy Corp. priced $2.5 billion of senior notes (Baa2/BBB/BBB) in four parts on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $575 million of three-year floating-rate notes at par to yield Libor plus 115 basis points.
Initial price talk was in the Libor plus 125 bps area.
Valero sold $925 million of 1.2% notes due March 15, 2024 at 99.931 to yield 1.22%, or 105 bps over Treasuries.
The notes were talked at the Treasuries plus 125 bps area.
Also, the company priced a $400 million add-on to its 2.85% notes due April 15, 2025 at 105.763 to yield 1.524% and a 125 bps over Treasuries spread.
Initial price guidance was in the 145 bps area.
The notes were first priced on April 14 in a $650 million offering at 99.926 to yield 2.866% and a Treasuries plus 245 bps spread. The total outstanding is now $1.05 billion.
In addition, a $600 million offering of 2.15% seven-year notes priced with a Treasuries plus 170 bps spread, versus talk at the 190 bps area. The notes were sold at 99.87 to yield 2.17%.
Bookrunners were J.P. Morgan Securities LLC, Citigroup Global Markets Inc., MUFG, Scotia Capital (USA) Inc., BofA Securities, Inc., Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments, Inc.
Proceeds will be used for general corporate purposes.
San Antonio-based Valero is an oil refinery owner and operator.
| Issuer: | Valero Energy Corp.
|
| Amount: | $2.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., MUFG, Scotia Capital (USA) Inc., BofA Securities, Inc., Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments, Inc.
|
| Co-managers: | Barclays, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC
|
| Trade date: | Sept. 8
|
| Settlement date: | Sept. 10
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $575 million
|
| Maturity: | Sept. 15, 2023
|
| Coupon: | Libor plus 115 bps
|
| Price: | Par
|
| Yield: | Libor plus 115 bps
|
| Call feature: | On or after Sept. 10, 2021 at par
|
| Price guidance: | Libor plus 125 bps area
|
|
|
| Four-year notes
|
| Amount: | $925 million
|
| Maturity: | March 15, 2024
|
| Coupon: | 1.2%
|
| Price: | 99.931
|
| Yield: | 1.22%
|
| Spread: | Treasuries plus 105 bps
|
| Call feature: | Make-whole call at Treasuries plus 15 bps
|
| Price guidance: | Treasuries plus 125 bps area
|
|
|
| Five-year notes
|
| Amount: | $400 million reopening
|
| Maturity: | April 15, 2025
|
| Coupon: | 2.85%
|
| Price: | 105.763
|
| Yield: | 1.524%
|
| Spread: | Treasuries plus 125 bps
|
| Call features: | Make-whole call at Treasuries plus 40 bps before March 15, 2025; thereafter at par
|
| Price guidance: | Treasuries plus 145 bps area
|
| Total outstanding: | $1.05 billion, including $650 million of notes priced April 14 at 99.926 to yield 2.866%, or Treasuries plus 245 bps
|
|
|
| Seven-year notes
|
| Amount: | $600 million
|
| Maturity: | Sept. 15, 2027
|
| Coupon: | 2.15%
|
| Price: | 99.87
|
| Yield: | 2.17%
|
| Spread: | Treasuries plus 170 bps
|
| Call feature: | Make-whole call at Treasuries plus 30 bps before July 15, 2027; thereafter at par
|
| Price guidance: | Treasuries plus 190 bps area
|
|
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