Valero 2015 Annual Report Download - page 86

Table of Contents
VALERO ENERGY CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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Revolver
In November 2015, we amended and restated our $3 billion revolving credit facility (the Revolver) with a group of financial institution
lenders to, among other things, extend the maturity date from November 2018 to November 2020. We have the option to increase the
aggregate commitments under the Revolver to $4.5 billion and we may request two additional one-year extensions, subject to certain
conditions. The Revolver also provides for the issuance of letters of credit of up to $2.0 billion.
Outstanding borrowings under the Revolver bear interest, at our option, at either (a) the adjusted LIBO rate (as defined in the Revolver)
for the applicable interest period in effect from time to time plus the applicable margin or (b) the alternate base rate (as defined in the
Revolver) plus the applicable margin. The Revolver also requires payments for customary fees, including facility fees, letter of credit
participation fees, and administrative agent fees. The interest rate and facility fees under the Revolver are subject to adjustment based
upon the credit ratings assigned to our senior unsecured debt.
During the years ended December 31, 2015, 2014, and 2013, we had no borrowings or repayments under the Revolver.
VLP Revolver
In November 2015, VLP’s senior unsecured revolving credit facility agreement (the VLP Revolver) with a group of lenders was
amended and restated to, among other things, extend the maturity date from December 2018 to November 2020 and increase the total
commitment from $300 million to $750 million. The VLP Revolver is available only to the operations of VLP, and creditors of VLP do
not have recourse against Valero. VLP has the option to increase the aggregate commitments under the VLP Revolver to $1.0 billion
and we may request two additional one-year extensions, subject to certain conditions. VLP may terminate the VLP Revolver with notice
to the lenders of at least three business days prior to termination. The VLP Revolver includes a letter of credit sub-facility of up to
$100 million. VLP’s obligations under the VLP Revolver are jointly and severally guaranteed by all of VLP’s directly owned material
subsidiaries. As of December 31, 2015, the only guarantor under the VLP Revolver was Valero Partners Operating Co. LLC.
Outstanding borrowings under the VLP Revolver bear interest, at VLP’s option, at either (a) the adjusted LIBO rate (as defined in the
VLP Revolver) for the applicable interest period in effect from time to time plus the applicable margin or (b) the alternate base rate (as
defined in the VLP Revolver) plus the applicable margin. As of December 31, 2015, the variable rate was 1.5 percent. The
VLP Revolver requires payments for customary fees, including commitment fees, letter of credit participation fees, and administrative
agent fees. The VLP Revolver contains certain restrictive covenants, including a ratio of total debt to EBITDA (as defined in the
VLP Revolver) for the prior four fiscal quarters of not greater than 5.0 to 1.0 as of the last day of each fiscal quarter, and limitations on
VLP’s ability to pay distributions to its unitholders.
During the year ended December 31, 2015, VLP borrowed $200 million under the VLP Revolver in connection with VLP’s acquisition
of the Houston and St. Charles Terminal Services Business and repaid $25 million on the VLP Revolver. During the years ended
December 31, 2014 and 2013, VLP had no borrowings or repayments under the VLP Revolver. As of December 31, 2015, $175
million was outstanding under the VLP Revolver.
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