Sunoco LP (NYSE: SUN) has just announced a private offering of senior notes due 2029 and 2032, with aggregate principal amounts of $750 million each. The company intends to use the net proceeds from the offering to repay certain outstanding indebtedness of NuStar Energy L.P. in connection with a pending merger between Sunoco and NuStar, fund the redemption of NuStar’s preferred units, and pay offering fees and expenses. It's worth noting that this offering is not contingent on the completion of the NuStar merger.
If the consummation of the NuStar merger does not occur on or before April 22, 2025, or if Sunoco determines that the merger cannot or is not reasonably likely to be completed by that date, the notes will be subject to a special mandatory redemption.
The offering of the notes has not been registered under the Securities Act of 1933, and Sunoco plans to offer and sell the notes only to qualified institutional buyers pursuant to Rule 144A and to non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act.
Sunoco LP is a master limited partnership with core operations that include the distribution of motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers, and distributors located in more than 40 U.S. states and territories, as well as refined product transportation and terminalling assets in the U.S. and Europe. The company's general partner is owned by Energy Transfer LP (NYSE: ET). The market has reacted to these announcements by moving the company's shares -0.7% to a price of $51.4. If you want to know more, read the company's complete 8-K report here.
