Summary
Valero Energy Corporation (VLO) has announced the issuance and sale of $750 million in aggregate principal amount of 4.350% Senior Notes due 2028. This debt offering was made under an underwriting agreement with several prominent financial institutions and is registered under the Securities Act of 1933. The offering is being conducted through a prospectus and is expected to close on June 1, 2018. This move indicates Valero's strategy to access capital markets, likely to support its ongoing operations, growth initiatives, or to refinance existing debt. Investors should note the coupon rate of 4.350%, which provides a fixed income stream for the duration of the notes. The specific use of proceeds is not detailed in this filing, but such issuances are common for energy companies seeking to manage their capital structure and fund strategic objectives.
Key Highlights
- 1Valero Energy Corporation is issuing $750 million in aggregate principal amount of 4.350% Senior Notes due 2028.
- 2The notes are being offered for sale through an underwriting agreement with Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, and Wells Fargo Securities, LLC.
- 3The offering is registered under the Securities Act of 1933 via a Form S-3 registration statement.
- 4The issuance is being made pursuant to a prospectus supplement dated May 17, 2018.
- 5The closing of the issuance and sale of the notes is anticipated to occur on June 1, 2018.
- 6The Underwriting Agreement is filed as an exhibit to this report.