Published on 11/19/2021 in the Prospect News Investment Grade Daily.
New Issue: Valero details $1.45 billion of notes in two parts due 2031, 2051
By Devika Patel
Knoxville, Tenn., Nov. 19 – Valero Energy Corp. offered further details, including the price and yield, about a $1.45 billion sale of notes (Baa2/BBB/BBB) that priced in two parts on Thursday, according to an FWP filed with the Securities and Exchange Commission.
Valero priced $500 million of 2.8% 10-year notes at a spread of Treasuries plus 125 basis points. These notes priced at 99.749 to yield 2.829%.
The company also sold a larger tranche for $950 million of 3.65% 30-year notes with a spread of Treasuries plus 170 bps. These notes priced at 99.674 to yield 3.668%.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc., BofA Securities, Inc., MUFG, Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC were 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.
|
| Amount: | $1.45 billion
|
| Issue: | Notes
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc., BofA Securities, Inc., MUFG, Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC
|
| 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 U.S. Bancorp Investments Inc.
|
| Trustee: | U.S. Bank NA
|
| Counsel to issuer: | Baker Botts LLP
|
| Counsel to bookrunners: | Davis Polk & Wardwell LLP
|
| Trade date: | Nov. 18
|
| Settlement date: | Nov. 29
|
| 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%
|
| Price: | 99.749
|
| Yield: | 2.829%
|
| Spread: | Treasuries plus 125 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until Sept. 1, 2031, then a par call
|
| Cusip: | 91913YBC3
|
|
|
| 30-year notes
|
| Amount: | $950 million
|
| Maturity: | Dec. 1, 2051
|
| Coupon: | 3.65%
|
| Price: | 99.674
|
| Yield: | 3.668%
|
| Spread: | Treasuries plus 170 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until June 1, 2051, then a par call
|
| Cusip: | 91913YBD1
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
