Debt

3 Months Ended

Mar. 31, 2019

Public Debt

During the three months ended March 31, 2019, the following activity occurred:

•

We issued $1 billion of 4.00 percent Senior Notes due April 1, 2029. Proceeds from this debt issuance totaled $992 million before deducting the underwriting discount and other debt issuance costs. In April 2019, the proceeds were used to redeem our 6.125 percent Senior Notes due February 1, 2020 (6.125 percent Senior Notes) for $871 million, or 102.48 percent of stated value, which includes an early redemption fee of $21 million that will be reflected in “other income, net” in our statements of income for the three and six months ended June 30, 2019.


•	In connection with the completion of the Merger Transaction as described in Note 2, Valero entered into a guarantee agreement to fully and unconditionally guarantee the prompt payment, when due, of any amount owed to the holders of VLP’s 4.375 percent Senior Notes due December 15, 2026 and 4.5 percent Senior Notes due March 15, 2028. See Note 15 for condensed consolidating financial statements.

During the three months ended March 31, 2018, VLP issued $500 million of 4.5 percent Senior Notes due March 15, 2028. Proceeds from this debt issuance totaled $498 million before deducting the underwriting discount and other debt issuance costs. The proceeds were available only to the operations of VLP and were

used to repay the outstanding balance of $410 million on the VLP Revolver (defined below) and $85 million of its notes payable to us, which were eliminated in consolidation.

Credit Facilities

Summary of Credit Facilities

We had outstanding borrowings, letters of credit issued, and availability under our credit facilities as follows (amounts in millions and currency in U.S. dollars, except as noted):



				March 31, 2019
	Facility Amount		Maturity Date	Outstanding Borrowings		Letters of Credit Issued (b)		Availability
Committed facilities:
Valero Revolver	$	4,000	March 2024	$	—	$	55	$	3,945
Canadian Revolver	C$	150	November 2019	C$	—	C$	5	C$	145
Accounts receivable sales facility	$	1,300	July 2019	$	100	n/a		$	1,200
Letter of credit facility	$	100	November 2019	n/a		$	—	$	100
Committed facilities of VIE (a):
IEnova Revolver	$	340	February 2028	$	132	n/a		$	208
Uncommitted facilities:
Letter of credit facilities	n/a		n/a	n/a		$	408	n/a

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(a)	Creditors of our VIE do not have recourse against us.


(b)	Letters of credit issued as of March 31, 2019 expire at various times in 2019 through 2020.

Valero Revolver

In March 2019, we amended our revolving credit facility (the Valero Revolver) to increase the borrowing capacity from $3 billion to $4 billion and to extend the maturity date from November 2020 to March 2024. The Valero Revolver also provides for the issuance of letters of credit of up to $2.4 billion.

VLP Revolver

As of December 31, 2018, VLP had a $750 million senior unsecured revolving credit facility (the VLP Revolver) with a group of lenders that was scheduled to mature in November 2020. However, on January 10, 2019, in connection with the completion of the Merger Transaction as described in Note 2, the VLP Revolver was terminated.

Accounts Receivable Sales Facility

During the three months ended March 31, 2019, we sold and repaid $900 million of eligible receivables under our accounts receivable sales facility. As of March 31, 2019 and December 31, 2018, the variable interest rate on the accounts receivable sales facility was 3.1774 percent and 3.0618 percent, respectively.

IEnova Revolver

During the three months ended March 31, 2019, Central Mexico Terminals (as described in Note 8) borrowed $23 million and had no repayments under a combined $340 million unsecured revolving credit facility (IEnova Revolver) with IEnova (defined in Note 8). As of March 31, 2019 and December 31, 2018, the variable interest rate was 6.447 percent and 6.046 percent, respectively.

Other Disclosures

“Interest and debt expense, net of capitalized interest” is comprised of the following (in millions):



	Three Months Ended March 31,
	2019		2018
Interest and debt expense	$	136	$	139
Less capitalized interest	24		18
Interest and debt expense, net of capitalized interest	$	112	$	121