Summary
Valero Energy Corporation (VLO) has entered into a Fifth Amended and Restated Revolving Credit Agreement, significantly enhancing its financial flexibility. This agreement, dated November 22, 2022, extends the maturity date of its revolving credit facility from March 19, 2024, to November 22, 2027. The total principal amount available under this facility remains at $4,000,000,000, with the potential for an additional $1,500,000,000, bringing the total commitment up to $5,500,000,000. This extension provides Valero with a longer-term, stable source of liquidity for general corporate purposes, which is crucial for managing operations and potential investments in the dynamic energy sector. The terms of the credit facility include interest rates tied to SOFR or Alternate Base Rate, with margins dependent on the company's credit ratings, and various commitment and participation fees. The agreement also contains standard covenants and events of default, reflecting a typical credit arrangement for a company of Valero's scale.
Key Highlights
- 1Extended revolving credit facility maturity to November 22, 2027, providing long-term liquidity.
- 2Maintained aggregate principal amount of $4,000,000,000 with an option to increase by $1,500,000,000, totaling up to $5,500,000,000.
- 3Interest rates are variable, based on Adjusted Term SOFR Rate or Alternate Base Rate plus a credit-rating-dependent margin.
- 4Includes a letter of credit subfacility of up to $2,400,000,000.
- 5Commitment fees range from 0.1% to 0.3% per annum, based on credit ratings.
- 6Proceeds from the credit facility are designated for general corporate purposes.
- 7The agreement contains customary covenants and events of default.