Summary
Valero Energy Corporation (VLO) filed an 8-K on February 8, 2010, to report on a significant debt financing transaction. The company entered into an underwriting agreement on February 3, 2010, to issue and sell $400 million in 4.500% Notes due 2015 and $850 million in 6.125% Notes due 2020. This offering was conducted under a shelf registration statement previously filed with the SEC. The closing of this debt issuance was scheduled for February 8, 2010. This move indicates Valero's strategy to raise capital through the public debt markets, likely to fund operations, refinance existing debt, or pursue strategic initiatives. Investors should note the aggregate principal amount raised and the specific interest rates and maturity dates of the new notes.
Key Highlights
- 1Valero Energy Corp. entered into an underwriting agreement on February 3, 2010, for a public offering of debt securities.
- 2The offering includes $400,000,000 in aggregate principal amount of 4.500% Notes due 2015.
- 3The offering also includes $850,000,000 in aggregate principal amount of 6.125% Notes due 2020.
- 4The total aggregate principal amount of the offering is $1,250,000,000 ($400M + $850M).
- 5The notes are issued under an Indenture dated June 18, 2004, with The Bank of New York Mellon Trust Company, N.A.
- 6The offering was registered under a shelf registration statement previously filed with the SEC.
- 7The closing of the issuance and sale of the notes was scheduled for February 8, 2010.