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Debt (Tables) | 9 Months Ended
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Sep. 30, 2023
Debt Disclosure [Abstract] |
Debt purchased and retired | 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 September 2022, we used cash on hand to purchase and retire a portion of the following notes in connection with cash tender offers that we publicly announced in August 2022 and completed in September 2022 (in millions):
Debt Purchased and Retired |  | Principal Amount
3.65% Senior Notes due 2025 |  | $ | 48 |
2.850% Senior Notes due 2025 |  | 291 |
4.375% VLP Senior Notes due 2026 |  | 62 |
3.400% Senior Notes due 2026 |  | 166 |
4.350% Senior Notes due 2028 |  | 131 |
4.000% Senior Notes due 2029 |  | 552 |
Total |  | $ | 1,250 |
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 |
Summary of 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):
|  |  |  |  | September 30, 2023
| Facility Amount |  | Maturity Date |  | Outstanding Borrowings |  | Letters of Credit Issued (a) |  | Availability
Committed facilities: |  |  |  |  |  |  |  |  |
Valero Revolver | $ | 4,000 |  |  | November 2027 |  | $ | — |  |  | $ | 4 |  |  | $ | 3,996 |
Canadian Revolver (b) | C$ | 150 |  |  | November 2023 |  | C$ | — |  |  | C$ | 5 |  |  | C$ | 145 |
Accounts receivable sales facility | $ | 1,300 |  |  | July 2024 |  | $ | — |  |  | n/a |  | $ | 1,300 |
Committed facilities of VIEs (c): |  |  |  |  |  |  |  |  |
DGD Revolver (d) | $ | 400 |  |  | June 2026 |  | $ | 200 |  |  | $ | 106 |  |  | $ | 94 |
DGD Loan Agreement (e) | $ | 100 |  |  | June 2026 |  | $ | — |  |  | n/a |  | $ | 100 |
IEnova Revolver (f) | $ | 830 |  |  | February 2028 |  | $ | 748 |  |  | n/a |  | $ | 82 |
Uncommitted facilities: |  |  |  |  |  |  |  |  |
Letter of credit facilities | n/a |  | n/a |  | n/a |  | $ | 177 |  |  | n/a
________________________ (a)Letters of credit issued as of September 30, 2023 expire at various times in 2023 through 2026. (b)On October 24, 2023, we amended this facility to (i) extend the maturity date to February 2024 and (ii) reduce the facility amount so that, effective October 31, 2023, the facility amount will equal the amount of the outstanding letters of credit thereunder, and will not permit further borrowings other than certain deemed borrowings to satisfy the reimbursement obligations under such letters of credit. (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 7.173 percent and 5.880 percent as of September 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 agreement to June 2023. In June 2023, DGD entered into a new unsecured revolving loan agreement that replaced and superseded the previous agreement. The new agreement includes the following modifications from the previous agreement: (i) extends the maturity date to June 2026, (ii) increases 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) transitions 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 9.097 percent and 7.393 percent as of September 30, 2023 and December 31, 2022, respectively. Activity under our credit facilities was as follows (in millions):
| Nine Months Ended September 30,
| 2023 |  | 2022
Borrowings: |  |  |
Accounts receivable sales facility | $ | 1,750 |  |  | $ | 1,200 |
DGD Revolver | 500 |  |  | 659 |
DGD Loan Agreement | — |  |  | 25 |
IEnova Revolver | 86 |  |  | 73 |
Repayments: |  |  |
Accounts receivable sales facility | (1,750) |  |  | (1,200) |
DGD Revolver | (400) |  |  | (659) |
DGD Loan Agreement | (25) |  |  | (50) |
IEnova Revolver | (55) |  |  | (47) |
Interest and debt expense, net of capitalized interest | “Interest and debt expense, net of capitalized interest” is comprised as follows (in millions):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Interest and debt expense | $ | 153 |  |  | $ | 154 |  |  | $ | 456 |  |  | $ | 467 |
Less: Capitalized interest | 4 |  |  | 16 |  |  | 13 |  |  | 42 |
Interest and debt expense, net of capitalized interest | $ | 149 |  |  | $ | 138 |  |  | $ | 443 |  |  | $ | 425 |

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