By Aleesia Forni
Virginia Beach, March 10 – Valero Energy Corp. came to market on Tuesday with a $1.25 billion two-tranche offering of senior notes (Baa2/BBB/BBB), according to an informed source.
A $600 million tranche of 3.65% 10-year notes sold at 155 basis points over Treasuries. Pricing was at 99.709 to yield 3.685%.
There was also $650 million of 4.9% 30-year notes priced at 99.594 to yield 4.926%, or Treasuries plus 220 bps.
Both tranches sold at the tight end of price talk.
Citigroup Global Markets Inc., Barclays, MUFG and Wells Fargo Securities LLC are the bookrunners.
Proceeds will be used for general corporate purposes.
San Antonio-based Valero is an oil refinery owner and operator.
| Issuer: | Valero Energy Corp.
|
| Issue: | Senior notes
|
| Amount: | $1.25 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Barclays, MUFG, Wells Fargo Securities LLC
|
| Trade date: | March 10
|
| Settlement date: | March 13
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | March 15, 2025
|
| Coupon: | 3.65%
|
| Price: | 99.709
|
| Yield: | 3.685%
|
| Spread: | 155 bps over Treasuries
|
| Price talk: | 160 bps area over Treasuries
|
|
|
| 30-year bonds
|
| Amount: | $650 million
|
| Maturity: | March 15, 2045
|
| Coupon: | 4.9%
|
| Price: | 99.594
|
| Yield: | 4.926%
|
| Spread: | 220 bps over Treasuries
|
| Price talk: | 225 bps area over Treasuries
|
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