Valvoline Inc (VVV) News & EventsVVVNews & EventsValvoline Inc

Valvoline Commences Offering of $500 Million Senior Notes

Valvoline announced the commencement of an offering of $500,000,000 aggregate principal amount of Senior Notes due 2034. The offering of the Notes is part of a leverage-neutral coordinated refinancing transaction intended to strengthen Valvoline's debt maturity profile and enhance liquidity. The Notes will be unsubordinated unsecured obligations of Valvoline. Each of Valvoline's subsidiaries that guarantees Valvoline's obligations under its senior secured credit facilities will guarantee the Notes on an unsubordinated unsecured basis. Valvoline intends to use the net proceeds from the offering, together with cash and cash equivalents on hand, to repay in full its senior secured term loan A facility and partially repay its senior secured term loan B facility and to pay related fees and expenses. Concurrent with the offering, Valvoline intends to enter into an amendment to its existing revolving credit facility to, among other things, increase availability thereunder from $475M to $600M, reduce the pricing thereof and extend its maturity to the date that is five years after the amendment effective date. The Credit Facilities Amendment is expected to enhance Valvoline's liquidity position, reduce borrowing costs and provide additional financial flexibility. The offering of Notes is not conditioned upon the effectiveness of the Credit Facilities Amendment.

Company Reports Q3 Revenue of $545M Exceeding Expectations

Reports Q3 revenue $545M, consensus $543.61M. "We delivered another strong quarter, with sales and profit growth in line with our expectations," said Lori Flees, President & CEO. "Top-line sales grew 24%, with system-wide same-store sales growth of 8.0%, benefiting from pricing actions taken in the quarter. We generated healthy profit growth, solid margins and improved SG&A leverage. The team continues to manage the business effectively through the changing supply and macro environment. Our results demonstrate the strength, resilience, and growth in our business."