New Issue: Valero Energy prices $1 billion 4% 10-year notes at 155 bps spread

By Cristal Cody

Tupelo, Miss., March 21 – Valero Energy Corp. priced $1 billion of 4% 10-year senior notes on Thursday at a spread of 155 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.

The notes (Baa2/BBB/BBB) priced at 99.233 to yield 4.094%.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., MUFG, Barclays, BofA Merrill Lynch, Scotia Capital (USA) Inc. and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used for general corporate purposes, including the redemption of the company’s $850 million of 6.125% senior notes due 2020.

San Antonio-based Valero is an oil refinery owner and operator.

Issuer:	Valero Energy Corp.
Amount:	$1 billion
Description:	Senior notes
Maturity:	April 1, 2029
Bookrunners:	Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., MUFG, Barclays, BofA Merrill Lynch, Scotia Capital (USA) Inc. and Wells Fargo Securities LLC
Co-managers:	BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Lloyds Securities Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
Coupon:	4%
Price:	99.233
Yield:	4.094%
Spread:	Treasuries plus 155 bps
Call features:	Make-whole call at Treasuries plus 25 bps; on or after Jan. 1, 2029 at par
Trade date:	March 21
Settlement date:	March 25
Ratings:	Moody’s: Baa2
	S&P: BBB
	Fitch: BBB
Distribution:	SEC registered

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