Sunoco LP has 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. This offering was upsized from an initial offering size of $850 million for each type of note.
The sale of the notes is 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 a variety of purposes, including funding a portion of the cash consideration for the Parkland acquisition and related transaction costs, as well as temporarily reducing the borrowings outstanding under Sunoco’s revolving credit facility and paying interest and fees in connection therewith.
It's important to note that this 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.
The offering of the notes has not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States except 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 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. Sunoco’s general partner is owned by Energy Transfer LP. Following these announcements, the company's shares moved -0.88%, and are now trading at a price of $50.75. Check out the company's full 8-K submission here.
