
4.	DEBT

Credit Facilities

Revolver

We have a $3 billion revolving credit facility (the Revolver) that matures in November 2018. We have the option to increase the aggregate commitments under the Revolver to $4.5 billion, subject to, among other things, the consent of the existing lenders whose commitments will be increased or any additional lenders providing such additional capacity. The Revolver has certain restrictive covenants, including a maximum debt-to-capitalization ratio of 60 percent. As of September 30, 2015 and December 31, 2014, we were in compliance with the Revolver’s restrictive covenants. As of September 30, 2015 and December 31, 2014, there were no borrowings outstanding under the Revolver.

VLP Revolver

VLP has a $300 million senior unsecured revolving credit facility agreement (the VLP Revolver) that matures in December 2018. The VLP Revolver bears interest at a variable rate, which was 1.5 percent as of September 30, 2015. The VLP Revolver is available only to the operations of VLP, and creditors of VLP do not have recourse against Valero. During the nine months ended September 30, 2015, VLP borrowed $200 million under the VLP Revolver in connection with VLP’s acquisition of the Houston and St. Charles Terminal Services Business, as further discussed in Note 2, and repaid $25 million on the VLP Revolver. As of September 30, 2015, VLP had $175 million of borrowings outstanding under the VLP Revolver. No borrowings were outstanding on the VLP Revolver as of December 31, 2014.

Canadian Revolver

One of our Canadian subsidiaries has a C$50 million committed revolving credit facility (the Canadian Revolver) that matures in November 2015. As of September 30, 2015 and December 31, 2014, there were no borrowings outstanding under the Canadian Revolver.

Letters of Credit

Letters of credit issued under our committed credit facilities were as follows (in millions):



				Amounts Issued
	Borrowing Capacity		Expiration	September 30, 2015		December 31, 2014
Letter of credit facility	$	125	June 2016	$	20	$	56
Revolver	$	3,000	November 2018	$	54	$	54
VLP Revolver	$	300	December 2018	$	—	$	—
Canadian Revolver	C$	50	November 2015	C$	10	C$	10

In June 2015, one of our committed letter of credit facilities with a borrowing capacity of $300 million expired and was not renewed. The remaining committed letter of credit facility was amended in July 2015 to extend the maturity date to June 2016 and reduce the borrowing capacity from $250 million to $125 million.

As of September 30, 2015 and December 31, 2014, there were $93 million and $80 million, respectively, of letters of credit issued under our uncommitted short-term bank credit facilities.

Non-Bank Debt

During the nine months ended September 30, 2015, we issued $600 million of 3.65 percent senior notes due March 15, 2025 and $650 million of 4.9 percent senior notes due March 15, 2045. Proceeds from these debt issuances totaled $1.246 billion. We also incurred $12 million of debt issuance costs.

In addition, during the nine months ended September 30, 2015, we made scheduled debt repayments of $400 million related to our 4.5 percent senior notes and $75 million related to our 8.75 percent debentures. During the nine months ended September 30, 2014, we made a scheduled debt repayment of $200 million related to our 4.75 percent senior notes.

Accounts Receivable Sales Facility

We have an accounts receivable sales facility with a group of third-party entities and financial institutions to sell eligible trade receivables on a revolving basis. In July 2015, we amended our agreement to decrease the facility from $1.5 billion to $1.4 billion and extended the maturity date to July 2016. Proceeds from the sale of receivables under this facility are reflected as debt. Under this program, one of our marketing subsidiaries (Valero Marketing) sells eligible receivables, without recourse, to another of our subsidiaries (Valero Capital), whereupon the receivables are no longer owned by Valero Marketing. Valero Capital, in turn, sells an undivided percentage ownership interest in the eligible receivables, without recourse, to the third-party entities and financial institutions. To the extent that Valero Capital retains an ownership interest in the receivables it has purchased from Valero Marketing, such interest is included in our financial statements solely as a result of the consolidation of the financial statements of Valero Capital with those of Valero Energy Corporation; the receivables are not available to satisfy the claims of the creditors of Valero Marketing or Valero Energy Corporation.

As of September 30, 2015 and December 31, 2014, we had $100 million outstanding under our accounts receivable sales facility.

Capitalized Interest

Capitalized interest was $18 million and $17 million for the three months ended September 30, 2015 and 2014, respectively, and $50 million and $52 million for the nine months ended September 30, 2015 and 2014, respectively.