Summary
Valero Energy Corporation (VLO) announced on March 16, 2009, the successful completion of a public offering of senior notes totaling $1 billion. This offering comprised $750 million of 9.375% Notes due 2019 and $250 million of 10.500% Notes due 2039. The issuance, which closed on March 17, 2009, was made under the company's existing shelf registration statement and an indenture with The Bank of New York Mellon Trust Company, N.A. This move indicates Valero's proactive approach to managing its capital structure and potentially refinancing existing debt or funding ongoing operations during a challenging economic period. The significant capital raised through these notes could provide the company with greater financial flexibility and liquidity, which is crucial for a capital-intensive industry like oil refining.
Key Highlights
- 1Valero Energy Corp. issued $1 billion in aggregate principal amount of senior notes.
- 2The offering included $750 million of 9.375% Notes due 2019.
- 3The offering also included $250 million of 10.500% Notes due 2039.
- 4The notes were issued under an existing shelf registration statement.
- 5The closing of the note issuance occurred on March 17, 2009.
- 6The underwriting agreement was dated March 12, 2009, with Barclays Capital Inc., J.P. Morgan Securities Inc., and UBS Securities LLC acting as representatives.