Valero Energy $1.25 billion cash tender offer

Davis Polk advised the dealer managers in connection with Valero Energy Corporation’s cash tender offer to purchase certain of its debt securities for cash up to a combined aggregate purchase price of $1.25 billion.

Valero Energy Corporation, through its subsidiaries (collectively, “Valero”), is an international manufacturer and marketer of transportation fuels and petrochemical products. Valero is a Fortune 500 company based in San Antonio, Texas, and owns 15 petroleum refineries with a combined throughput capacity of approximately 3.2 million barrels per day and 12 ethanol plants with a combined production capacity of approximately 1.6 billion gallons per year. The petroleum refineries are located in the United States, Canada and the United Kingdom and the ethanol plants are located in the Mid-Continent region of the United States. Valero is also a joint venture partner in Diamond Green Diesel, which owns and operates a renewable diesel plant in Norco, Louisiana. Diamond Green Diesel owns North America’s largest biomass-based diesel plant. Valero sells its products in the wholesale rack or bulk markets in the United States, Canada, the United Kingdom, Ireland and Latin America. Approximately 7,000 outlets carry Valero’s brand names.

The Davis Polk capital markets team included partner Richard D. Truesdell Jr., counsel Hillary A. Coleman and associate Caroline G. Armstrong. The tax team included partner Corey M. Goodman and associate Bradford Sherman. All members of the Davis Polk team are based in the New York office.