By Andrea Heisinger
New York, March 12 - Valero Energy Corp. priced $1 billion of notes (Baa2/BBB/BBB) in two tranches Thursday, according to an FWP filing with the Securities and Exchange Commission.
The $750 million of 9.375% 10-year notes priced at 99.867 to yield 9.396%, or Treasuries plus 650 basis points. This tranche priced below price talk that was in the 662.5 bps area, a source close to the deal said.
The $250 million of 10.5% 30-year notes priced at 99.748 to yield 10.528%, or Treasuries plus 687.5 bps. The tranche came in tighter than price guidance that was in the 700 bps area.
Both tranches have make-whole calls at Treasuries plus 50 bps.
Bookrunners were Barclays Capital Inc., BNP Paribas Securities, Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and UBS Investment Bank.
Proceeds will be used for general corporate purposes.
The oil refining and products company is based in San Antonio.
| Issuer: | Valero Energy Corp.
|
| Issue: | Notes
|
| Total amount: | $1 billion
|
| Bookrunners: | Barclays Capital Inc., BNP Paribas Securities, Citigroup Global Markets Inc., J.P. Morgan Securities Inc., UBS Investment Bank
|
| Trade date: | March 12
|
| Settlement date: | March 17
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | March 15, 2019
|
| Coupon: | 9.375%
|
| Price: | 99.867
|
| Yield: | 9.396%
|
| Spread: | Treasuries plus 650 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 662.5 bps area
|
|
|
| 30-year notes
|
| Amount: | $250 million
|
| Maturity: | March 15, 2039
|
| Coupon: | 10.5%
|
| Price: | 99.748
|
| Yield: | 10.528%
|
| Spread: | Treasuries plus 687.5 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 700 bps area
|
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