Valvoline to price $535 million 10.5-year notes in Tuesday drive-by; price talk 3¾% area

By Paul A. Harris

Portland, Ore., Dec. 15 – Valvoline Inc. plans to price a $535 million offering of senior notes due June 15, 2031 (existing ratings Ba3/BB-) in a Tuesday drive-by, according to market sources.

Price talk is in the 3¾% area, inside of initial guidance in the 4% area.

Left lead bookrunner Morgan Stanley & Co. LLC will bill and deliver. BofA Securities Inc., Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., Fifth Third Securities Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc. and Deutsche Bank Securities Inc. are the joint bookrunners.

Truist Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., MUFG, PNC Capital Markets LLC, TD Securities (USA) LLC, KeyBanc Capital Markets Inc., HUNSEC, ING Financial Markets LLC, CFGRPI and BBVA Securities Inc. are the co-managers.

The Rule 144A and Regulation S for life 10.25-year notes become callable after June 15, 2026 at par plus 50% of coupon.

The Lexington, Ky.-based supplier of automotive lubricants plans to use the proceeds, along with cash and cash equivalents on its balance sheet, to redeem its 4 3/8% senior notes due August 2025.

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