DALLAS, Jan. 9, 2018 /PRNewswire/ -- Sunoco LP
(NYSE: SUN) ("Sunoco") today announced that it has priced at 100%
an upsized private offering of $2.2
billion of senior notes, comprised of $1 billion in aggregate principal amount of
4.875% senior notes due 2023, $800
million in aggregate principal amount of 5.500% senior notes
due 2026 and $400 million in
aggregate principal amount of 5.875% senior notes due 2028
(collectively, the "notes"). This represents a $450 million increase in the original offering
amount. Sunoco Finance Corp., a wholly owned direct subsidiary of
Sunoco, will serve as co-issuer of the notes. The sale of the notes
is expected to settle on January 23,
2018, subject to the satisfaction of customary closing
conditions.
Sunoco intends to use the net proceeds from the offering to
redeem in full (i) its 5.500% senior notes due 2020 at a call
premium of 102.750%, plus accrued and unpaid interest, and (ii)
each of its 6.250% senior notes due 2021 and 6.375% senior notes
due 2023 at a make-whole premium, plus accrued and unpaid
interest. Sunoco intends to use the proceeds from its
previously announced sale of certain company-operated retail fuel
outlets to 7-Eleven, Inc. (the "7-Eleven Transaction") to (i) repay
in full and terminate its existing senior secured term loan
agreement, (ii) repay a portion of the outstanding borrowings under
its existing $1.5 billion revolving
credit facility, (iii) pay all closing costs and taxes in
connection with the 7-Eleven Transaction, (iv) redeem all of its
outstanding Series A Preferred Units and (v) fund the repurchase of
a portion of its outstanding common units.
The offering of the notes has not been registered under the
Securities Act of 1933, as amended (the "Securities Act"), or any
state securities laws and, unless so registered, the notes 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.
This press release is neither an offer to sell nor a
solicitation of an offer to buy the notes or any other securities
and shall not constitute an offer to sell or a solicitation of an
offer to buy, or a sale of, the notes or any other securities in
any jurisdiction in which such offer, solicitation or sale is
unlawful.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master
limited partnership that operates 1,346 convenience stores and
retail fuel sites and distributes motor fuel to 7,898 convenience
stores, independent dealers, commercial customers and distributors
located in more than 30 states. Our parent – Energy Transfer
Equity, L.P. (NYSE: ETE) – owns Sunoco's general partner and all of
Sunoco's incentive distribution rights.
Cautionary Statement Relevant to Forward-Looking
Information
This press release includes forward-looking
statements regarding future events. These forward-looking
statements are based on Sunoco's current plans and expectations,
including with respect to the notes offering, the 7-Eleven
Transaction and the use of net proceeds therefrom, and involve a
number of risks and uncertainties that could cause actual results
and events to vary materially from the results and events
anticipated or implied by such forward-looking statements. For a
further discussion of these risks and uncertainties, please refer
to the "Risk Factors" section of Sunoco's most recently filed
annual report on Form 10-K, Sunoco's quarterly report on Form 10-Q
for the quarter ended March 31, 2017
and in other filings made by Sunoco with the Securities and
Exchange Commission. While Sunoco may elect to update these
forward-looking statements at some point in the future, it
specifically disclaims any obligation to do so, even if new
information becomes available in the future.
Contacts
Scott
Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA
Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
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SOURCE Sunoco LP