Sunoco LP (NYSE: SUN) 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 to fund a portion of the cash consideration for its acquisition of all of the issued and outstanding common shares of Parkland Corporation, along with related transaction costs.
If the Parkland acquisition has not been completed on or prior to May 5, 2026, or if the arrangement agreement among Sunoco, Parkland, and certain 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.
The offering of the notes has not been registered under the Securities Act of 1933, as amended, and may only be offered or sold in the United States pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
Sunoco LP is an energy infrastructure and fuel distribution master limited partnership with an extensive network of approximately 14,000 miles of pipeline and over 100 terminals for midstream operations. Following these announcements, the company's shares moved 0.0%, and are now trading at a price of $51.60. For more information, read the company's full 8-K submission here.
