Summary
Valero Energy Corporation (VLO) announced on September 8, 2020, that it entered into an underwriting agreement to issue and sell a significant aggregate principal amount of senior notes. This offering totals $2,100,000,000, consisting of Floating Rate Senior Notes due 2023, 1.200% Senior Notes due 2024, additional 2.850% Senior Notes due 2025, and 2.150% Senior Notes due 2027. The issuance of these notes was registered under the Securities Act of 1933 and made effective through a prospectus supplement. This move indicates Valero's strategy to raise capital, likely to manage its debt, fund operations, or pursue strategic initiatives during a period of economic uncertainty. Investors should note the different maturities and interest rates associated with these debt instruments, which impact the company's future financial obligations and cost of capital.
Key Highlights
- 1Valero Energy Corp. entered into an underwriting agreement to issue $2.1 billion in senior notes.
- 2The new debt issuance includes Floating Rate Senior Notes due 2023 ($575 million), 1.200% Senior Notes due 2024 ($925 million), additional 2.850% Senior Notes due 2025 ($400 million), and 2.150% Senior Notes due 2027 ($600 million).
- 3The issuance was made under an existing effective registration statement and prospectus.
- 4The additional 2025 notes are fungible with previously issued notes, increasing the total outstanding principal amount to $1.05 billion.
- 5The offering was made through a syndicate of underwriters led by J.P. Morgan Securities LLC, Citigroup Global Markets Inc., MUFG Securities Americas Inc., and Scotia Capital (USA) Inc.
- 6The event date for entering the underwriting agreement was September 7, 2020, with the filing date on September 9, 2020.
- 7The notes were issued on September 10, 2020.