By Cristal Cody
Chicago, Nov. 18 – Valero Energy Corp. priced $1.45 billion of notes in two parts (Baa2/BBB/BBB) on Thursday, according to a market source and a 424B5 filing with the Securities and Exchange Commission early in the day.
Valero priced $500 million of 2.8% 10-year notes at a spread of Treasuries plus 125 basis points.
The company also sold a larger tranche for $950 million of 3.65% 30-year notes with a spread of Treasuries plus 170 bps.
The notes will have optional make-whole calls and then par calls.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc., BofA Securities, Inc., MUFG Securities Americas Inc., Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC are the joint bookrunning managers.
Proceeds will be used with cash on hand to finance the company’s tender offers started on Thursday.
San Antonio-based Valero is an oil refinery owner and operator.
| Issuer: | Valero Energy Corp.
|
| Issue: | Notes
|
| Amount: | $1.45 billion
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc., BofA Securities, Inc., MUFG Securities Americas Inc., Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC
|
| Trustee: | U.S. Bank NA
|
| Counsel to issuer: | Baker Botts LLP
|
| Counsel to bookrunners: | Davis Polk & Wardwell LLP
|
| Trade date: | Nov. 18
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Dec. 1, 2031
|
| Coupon: | 2.8%
|
| Spread: | Treasuries plus 125 bps
|
| Call features: | Make-whole call and then par call
|
|
|
| 30-year notes
|
| Amount: | $950 million
|
| Maturity: | Dec. 1, 2051
|
| Coupon: | 3.65%
|
| Spread: | Treasuries plus 170 bps
|
| Call features: | Make-whole call and then par call
|
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