8-KOther Events

VALERO ENERGY CORP/TX 8-K Report (Apr 15, 2002)

Filed April 15, 2002For Securities:VLO

Summary

Valero Energy Corporation (VLO) filed an 8-K on April 15, 2002, to report on a significant debt offering. The company has entered into an underwriting agreement for the public issuance of a substantial amount of notes, totaling $1.8 billion. This issuance includes $300 million in 6 1/8% Notes due 2007, $750 million in 6 7/8% Notes due 2012, and $750 million in 7 1/2% Notes due 2032. This substantial capital raise indicates Valero's strategic moves to finance its operations, growth, or potentially refinance existing debt. Investors should note the different maturities and coupon rates, which offer varying levels of risk and return. The closing of this offering is scheduled for April 15, 2002. The filing also includes several exhibits related to the underwriting agreement, the indenture under which the notes will be issued, and legal opinions.

Key Highlights

  • 1Valero Energy Corporation (VLO) announced a public offering of $1.8 billion in aggregate principal amount of notes.
  • 2The offering includes three tranches of notes with varying maturities and interest rates: $300 million (6 1/8% due 2007), $750 million (6 7/8% due 2012), and $750 million (7 1/2% due 2032).
  • 3The notes are being issued under an existing Indenture dated December 12, 1997, with The Bank of New York as Trustee.
  • 4The offering is registered under the Securities Act of 1933 via a shelf registration statement.
  • 5The closing of the debt issuance is scheduled for April 15, 2002.
  • 6Key exhibits filed include the underwriting agreement with Morgan Stanley & Co. Incorporated and J.P. Morgan Securities Inc., and officers' certificates related to the note issuance.

Frequently Asked Questions

This 8-K filing announces Valero Energy Corporation's entry into an underwriting agreement for a significant public offering of $1.8 billion in aggregate principal amount of notes. It details the different note series, their respective interest rates and maturity dates, and the planned closing date.

Valero is raising a total of $1.8 billion through the issuance of notes. This includes $300 million of 6 1/8% Notes due 2007, $750 million of 6 7/8% Notes due 2012, and $750 million of 7 1/2% Notes due 2032.

This large debt issuance suggests Valero is undertaking significant financing activities, which could be for expansion, acquisitions, refinancing existing debt, or general corporate purposes. Investors should consider the increased leverage and the terms of the new debt when evaluating the company's financial health and future prospects.

The closing of the issuance and sale of the Notes is scheduled to take place on April 15, 2002.