SAN ANTONIO, TX – Valero Energy Corporation (NYSE:VLO), a prominent player in the Oil, Gas & Consumable Fuels industry with a market capitalization of $42.5 billion, has entered into an agreement to issue $650 million in senior notes, with an interest rate of 5.150% and maturing in 2030. According to InvestingPro analysis, the company maintains a strong financial health score of "GOOD," supporting its debt management strategy. This transaction was finalized on Monday, with the sale expected to close on Friday, February 7, 2025.
The underwriting agreement was made with Citigroup (NYSE:C) Global Markets Inc., BofA Securities, Inc., J.P. Morgan Securities LLC, and Mizuho (NYSE:MFG) Securities USA LLC, acting as the representatives of the underwriters involved. The notes will be issued under an existing indenture dated March 10, 2015, with U.S. Bank Trust Company, National Association, serving as the trustee. This new issuance will add to Valero’s existing total debt of $10.8 billion, which InvestingPro data shows represents a moderate debt-to-equity ratio of 0.43.
Valero’s offering is registered under the Securities Act of 1933, as per the company’s Registration Statement on Form S-3. The sale is made through a prospectus dated January 30, 2025, and a prospectus supplement dated February 4, 2025. The details of the notes and the indenture are outlined in the prospectus, which is accessible through the Securities and Exchange Commission pursuant to Rule 424(b) of the Securities Act.
The issuance of the notes is not an offer to sell or a solicitation of an offer to buy any securities. The sale of securities in the offering is prohibited in jurisdictions where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Investors interested in the notes are directed to the prospectus and its supplement, which satisfy the requirements of Section 10 of the Securities Act. The underwriting agreement, indenture, terms of the notes, and the form of the notes have been filed with the SEC and are incorporated by reference in this report.
This news is based on a press release statement and reflects the latest strategic financial move by Valero Energy Corporation as it continues to manage its capital structure. The successful closure of this notes offering will mark another step in the company’s financial initiatives. InvestingPro analysis suggests the stock is currently undervalued, with strong returns over both the last month and the past decade. For deeper insights into Valero’s financial health and access to comprehensive Pro Research Reports covering 1,400+ top stocks, investors can explore InvestingPro’s extensive analysis tools and metrics.
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