Debt

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

DEBT

4.    DEBT

Public Debt

In February 2023, we used cash on hand to purchase and retire a portion of the following notes (in millions):

Debt Purchased and Retired	Principal Amount
6.625% Senior Notes due 2037	$	62
3.650% Senior Notes due 2051	26
4.000% Senior Notes due 2052	45
Various other Valero and Valero Energy Partners (VLP) Senior Notes	66
Total	$	199

In June 2022, we reduced our debt through the acquisition of the $300 million of 4.00 percent Gulf Opportunity Zone Revenue Bonds Series 2010 that are due December 1, 2040, but were subject to mandatory tender on June 1, 2022. We have the option to effectuate a remarketing of these bonds.

In February 2022, we issued $650 million of 4.000 percent Senior Notes due June 1, 2052. Proceeds from this debt issuance totaled $639 million before deducting the underwriting discount and other debt issuance costs. The proceeds and cash on hand were used to purchase and retire a portion of the following notes in connection with cash tender offers that we publicly announced and completed in February 2022 (in millions):

Debt Purchased and Retired	Principal Amount
3.65% Senior Notes due 2025	$	72
2.850% Senior Notes due 2025	507
4.375% VLP Senior Notes due 2026	168
3.400% Senior Notes due 2026	653
Total	$	1,400

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):

				June 30, 2023
	Facility Amount		Maturity Date	Outstanding Borrowings		Letters of Credit Issued (a)		Availability
Committed facilities:
Valero Revolver	$	4,000	November 2027	$	—	$	6	$	3,994
Canadian Revolver	C$	150	November 2023	C$	—	C$	5	C$	145
Accounts receivable sales facility (b)	$	1,300	July 2023	$	—	n/a		$	1,300
Committed facilities of VIEs (c):
DGD Revolver (d)	$	400	June 2026	$	50	$	58	$	292
DGD Loan Agreement (e)	$	100	June 2026	$	—	n/a		$	100
IEnova Revolver (f)	$	830	February 2028	$	733	n/a		$	97
Uncommitted facilities:
Letter of credit facilities	n/a		n/a	n/a		$	70	n/a

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(a)Letters of credit issued as of June 30, 2023 expire at various times in 2023 through 2024.

(b)In July 2023, we extended the maturity date of this facility to July 2024.

(c)Creditors of the VIEs do not have recourse against us.

(d)In June 2023, DGD amended this facility to (i) extend the maturity date to June 2026 and (ii) transition the benchmark reference interest rate previously based on the London Interbank Offered Rate (LIBOR) to a secured overnight financing rate (SOFR). The variable interest rate on the DGD Revolver was 6.980 percent and 5.880 percent as of June 30, 2023 and December 31, 2022, respectively.

(e)The amounts shown for this facility represent the facility amount available from, and borrowings outstanding to, the noncontrolling member as any transactions between DGD and us under this facility are eliminated in consolidation. In April 2023, DGD extended the maturity date of this facility to June 2023. In June 2023, DGD amended this facility to (i) extend the maturity date to June 2026, (ii) increase each member’s commitment from $25 million to $100 million, resulting in an increase in aggregate commitments from $50 million to $200 million, and (iii) transition the benchmark reference interest rate previously based on the LIBOR to Term SOFR. The variable interest rate on the DGD Loan Agreement was 6.672 percent as of December 31, 2022.

(f)Both parties to this facility have agreed to use a SOFR as the interest rate applied to outstanding borrowings. The variable interest rate on the IEnova Revolver was 8.740 percent and 7.393 percent as of June 30, 2023 and December 31, 2022, respectively.

Activity under our credit facilities was as follows (in millions):

	Six Months Ended June 30,
	2023		2022
Borrowings:
Accounts receivable sales facility	$	1,450	$	800
DGD Revolver	300		359
IEnova Revolver	54		46
Repayments:
Accounts receivable sales facility	(1,450)		(800)
DGD Revolver	(350)		(359)
DGD Loan Agreement	(25)		—
IEnova Revolver	(38)		(30)

Other Disclosures

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Interest and debt expense	$	151	$	156	$	303	$	313
Less: Capitalized interest	3		14		9		26
Interest and debt expense, net of capitalized interest	$	148	$	142	$	294	$	287