Summary
Valero Energy Corporation (VLO) has filed an 8-K report detailing a significant debt financing transaction. On June 5, 2007, the company entered into an underwriting agreement for the public offering of $750 million aggregate principal amount of 6.125% Notes due 2017 and $1.5 billion aggregate principal amount of 6.625% Notes due 2037, totaling $2.25 billion in new debt. These notes are issued under an existing indenture and were registered under the Securities Act of 1933, leveraging prior shelf registrations. The closing of this issuance was scheduled for June 8, 2007. This offering represents a substantial capital raise for Valero, providing funds likely for general corporate purposes, potential acquisitions, or refinancing existing debt. Investors should note the specific interest rates and maturity dates of these new notes, which will impact the company's future interest expense and debt maturity profile. The involvement of major underwriters like Barclays Capital, Citigroup, J.P. Morgan, Morgan Stanley, and UBS indicates a robust market reception for Valero's debt.
Key Highlights
- 1Valero Energy Corporation is issuing $750 million of 6.125% Notes due 2017 and $1.5 billion of 6.625% Notes due 2037.
- 2The total aggregate principal amount of the offering is $2.25 billion.
- 3The underwriting agreement was signed on June 5, 2007, with a scheduled closing date of June 8, 2007.
- 4The notes are issued under an existing Indenture dated June 18, 2004.
- 5The offering is registered under the Securities Act of 1933 via existing shelf registration statements.
- 6Major investment banks, including Barclays Capital, Citigroup, J.P. Morgan, Morgan Stanley, and UBS, are acting as underwriters.
- 7This filing is an 8-K reporting an 'Other Event' (Item 8.01).