8-KOther Events

VALERO ENERGY CORP/TX 8-K Report (Nov 18, 2002)

Filed November 18, 2002For Securities:VLO

Summary

Valero Energy Corporation (VLO) filed an 8-K on November 18, 2002, reporting a significant financing event. On November 15, 2002, the company entered into a placement agency agreement for the issuance and sale of $50 million in aggregate principal amount of 6.311% Notes due 2007. These notes are being issued under an existing Indenture and were registered under the Securities Act of 1933 through a shelf registration statement, indicating a pre-established framework for such offerings. The closing for this note issuance is scheduled for November 20, 2002. This action suggests Valero is actively managing its capital structure and potentially raising funds for operational needs, expansion, or debt refinancing. Investors should note the specific terms of the notes and the involvement of multiple placement agents, which is standard for significant debt issuances.

Key Highlights

  • 1Valero Energy Corporation entered into a placement agency agreement on November 15, 2002.
  • 2The company plans to issue and sell $50,000,000 in aggregate principal amount of 6.311% Notes due 2007.
  • 3The notes are being sold to Core Bond Products LLC, as depositor of the Core Investment Grade Bond Trust I.
  • 4The issuance will occur under an existing Indenture dated December 12, 1997, with The Bank of New York as Trustee.
  • 5The notes are registered under the Securities Act of 1933 via a shelf registration statement.
  • 6The closing for the issuance and sale of the notes is scheduled for November 20, 2002.
  • 7Several prominent financial institutions, including Banc of America Securities LLC and J.P. Morgan Securities Inc., acted as placement agents.

Frequently Asked Questions

This 8-K filing announces Valero Energy Corporation's entry into a placement agency agreement to issue $50 million of 6.311% Notes due 2007. It details the terms of this debt issuance and its scheduled closing date.

These notes represent a new debt issuance by Valero, raising $50 million. The 6.311% is the annual interest rate, and the notes are due in 2007. This is a way for Valero to secure funding, likely for operational purposes, capital expenditures, or debt management.

Valero Energy Corporation is the issuer of the notes. Core Bond Products LLC is the buyer. Banc of America Securities LLC, J.P. Morgan Securities Inc., Fleet Securities, Inc., HSBC Securities (USA) Inc., and Wachovia Securities, Inc. are acting as placement agents for this offering. The Bank of New York serves as the Trustee under the Indenture.

Not necessarily. Issuing new debt is a common corporate finance activity used for various purposes, including funding growth initiatives, refinancing existing debt, or managing working capital. The use of a shelf registration statement also suggests this is part of a pre-planned capital strategy rather than an emergency measure.