Published on 2/7/2022 in the Prospect News Investment Grade Daily.
New Issue: Valero Energy issues $650 million 4% notes due 2052 at 200 bps spread
By William Gullotti and Cristal Cody
Buffalo, N.Y., Feb. 7 – Valero Energy Corp. issued $650 million of 4% senior notes due June 1, 2052 (Baa2/BBB/BBB) on Monday, according to an 8-K filing with the Securities and Exchange Commission.
The notes priced at 98.261 to yield 4.101%, or 200 basis points over Treasuries.
Price talk was in the Treasuries plus 235 bps area.
The notes will have a make-whole call until Dec. 1, 2051, discounted at Treasuries plus 30 bps. Starting Dec. 1, 2051, the notes will also have a par call.
J.P. Morgan Securities LLC, BofA Securities, Inc., Wells Fargo Securities, LLC, Citigroup Global Markets Inc., MUFG, RBC Capital Markets, LLC, U.S. Bancorp Investments, Inc. and Scotia Capital (USA) Inc. are the joint bookrunning managers.
Proceeds will be used, along with cash on hand, to fund Valero’s $1 billion waterfall tender.
San Antonio-based Valero is an oil refinery owner and operator.
Issuer: | Valero Energy Corp.
|
Amount: | $650 million
|
Issue: | Senior notes
|
Maturity: | June 1, 2052
|
Bookrunners: | J.P. Morgan Securities LLC, BofA Securities, Inc., Wells Fargo Securities, LLC, Citigroup Global Markets Inc., MUFG, RBC Capital Markets, LLC, U.S. Bancorp Investments, Inc. and Scotia Capital (USA) Inc.
|
Co-managers: | Barclays, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Mizuho Securities USA LLC, PNC Capital Markets LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC and Truist Securities, Inc.
|
Coupon: | 4%
|
Price: | 98.261
|
Yield: | 4.101%
|
Spread: | Treasuries plus 200 bps
|
Call features: | Make-whole call at Treasuries plus 30 bps; on or after Dec. 1, 2051 at par
|
Pricing date: | Feb. 2
|
Settlement date: | Feb. 7
|
Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB
|
Distribution: | SEC registered
|
Price talk: | $500 million total at Treasuries plus 235 bps area
|
Cusip: | 91913YBE9
|
|
© 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.