Sunoco LP Prices Upsized Senior Notes Offering

By Greg Peters • Friday, September 05 12:01 • Permanent Link

Sunoco LP (NYSE: SUN) has recently announced the pricing of an upsized private offering of senior notes. The offering consists of 5.625% senior notes due 2031 in an aggregate principal amount of $1 billion and 5.875% senior notes due 2034 in an aggregate principal amount of $900 million.

The initial offering size was increased from $850 million aggregate principal amount of the 2031 notes and $850 million aggregate principal amount of the 2034 notes.

The notes are expected to settle on September 18, 2025, subject to the satisfaction of customary closing conditions.

Sunoco intends to use the net proceeds from this offering for the acquisition of all of the issued and outstanding common shares of Parkland Corporation, along with the net proceeds of a previously announced private offering of its series A fixed-rate reset cumulative redeemable perpetual preferred units, to fund a portion of the cash consideration for the Parkland acquisition and related transaction costs. Any remaining proceeds will be used for general corporate purposes.

The offering is not contingent on the completion of the Parkland acquisition or the preferred equity offering, and neither the Parkland acquisition nor the preferred equity offering is conditioned on the completion of this offering.

Sunoco has also outlined a special mandatory redemption provision for the notes if certain conditions are not met within a specified time frame.

The offering of the notes has not been registered under the Securities Act of 1933, as amended, or any state securities laws and is intended for qualified institutional buyers and non-U.S. persons.

Sunoco LP is an energy infrastructure and fuel distribution master limited partnership with operations in over 40 U.S. states, Puerto Rico, Europe, and Mexico. The partnership operates 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 -0.78% to a price of $51.20. If you want to know more, read the company's complete 8-K report here.

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