Sunoco LP has announced a private offering of senior notes due 2031 in an aggregate principal amount of $850 million and senior notes due 2034 in an aggregate principal amount of $850 million. The company intends to use the net proceeds from this offering for the closing of the acquisition of all of the issued and outstanding common shares of Parkland Corporation, as well as to temporarily reduce the borrowings outstanding under Sunoco’s revolving credit facility and pay interest and fees in connection therewith.
If the Parkland acquisition has not been completed on or prior to May 5, 2026, or if the arrangement agreement among Sunoco, Parkland, and their respective affiliates is terminated, the notes will be subject to a special mandatory redemption at a price equal to 100% of the initial issue price of the notes to be redeemed plus accrued and unpaid interest.
Sunoco LP is an energy infrastructure and fuel distribution master limited partnership operating in over 40 U.S. states, Puerto Rico, Europe, and Mexico with an extensive network of approximately 14,000 miles of pipeline and over 100 terminals for midstream operations. The market has reacted to these announcements by moving the company's shares -0.45% to a price of $51.37. For the full picture, make sure to review Sunoco LP's 8-K report.
