Published on 12/2/2016 in the Prospect News Investment Grade Daily.
New Issue: Valero prices $500 million 4.375% 10-year notes to yield 200 bps over Treasuries
By Cristal Cody
Eureka Springs, Ark., Dec. 2 – Valero Energy Partners LP priced $500 million of 4.375% 10-year senior notes on Friday at 99.959 to yield 4.38%, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes (Baa3/BBB-/BBB-) priced on the tight side of guidance with a spread of 200 basis points over Treasuries.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, PNC Capital Markets LLC, SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc. were the bookrunners.
Proceeds will be used for general partnership purposes.
San Antonio-based Valero is an oil refinery owner and operator.
| Issuer: | Valero Energy Partners LP
|
| Amount: | $500 million
|
| Description: | Senior notes
|
| Maturity: | Dec. 15, 2026
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, PNC Capital Markets LLC, SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc.
|
| Co-managers: | Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Lloyds Securities Inc., Mizuho Securities USA Inc., MUFG, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC, Wells Fargo Securities, LLC
|
| Coupon: | 4.375%
|
| Price: | 99.959
|
| Yield: | 4.38%
|
| Spread: | Treasuries plus 200 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps; on or after Sept. 15, 2026 at par
|
| Trade date: | Dec. 2
|
| Settlement date: | Dec. 9
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 212.5 bps area, plus or minus 12.5 bps
|
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