Published on 5/17/2018 in the Prospect News Investment Grade Daily.
New Issue: Valero Energy Partners prices $750 million 4.35% 10-year notes at 125 bps spread
By Cristal Cody
Tupelo, Miss., May 17 – Valero Energy Partners LP priced $750 million of 4.35% 10-year senior notes on Thursday at a spread of 125 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The notes (Baa2/BBB/BBB) priced at 99.912 to yield 4.361%.
BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC and TD Securities (USA) LLC were the bookrunners.
Proceeds will be used for general partnership purposes, which may include the redemption of $750 million of the company’s 9.375% senior notes due 2019.
San Antonio-based Valero is an oil refinery owner and operator.
| Issuer: | Valero Energy Partners LP
|
| Amount: | $750 million
|
| Description: | Senior notes
|
| Maturity: | June 1, 2028
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC and TD Securities (USA) LLC
|
| Co-managers: | Barclays, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Lloyds Securities Inc., Mizuho Securities USA LLC, MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc. and U.S. Bancorp Investments, Inc.
|
| Coupon: | 4.35%
|
| Price: | 99.912
|
| Yield: | 4.361%
|
| Spread: | Treasuries plus 125 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps; on or after March 1, 2028 at par
|
| Trade date: | May 17
|
| Settlement date: | June 1
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
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