Sunoco LP Announces Pricing of Upsized Private Offering of Senior Notes
Sunoco LP (NYSE: SUN) has successfully priced an upsized private offering of senior notes, consisting of $1 billion of 5.625% senior notes due 2031 and $900 billion of 5.875% senior notes due 2034. The offering, initially planned for $850 million each, was increased due to demand.
The proceeds will primarily fund the pending Parkland Corporation acquisition, alongside the previously announced Preferred Equity Offering. Prior to the acquisition closing, funds will temporarily reduce revolving credit facility borrowings. The notes include a special mandatory redemption provision if the Parkland acquisition isn't completed by May 5, 2026.
Sunoco LP (NYSE: SUN) ha collocato con successo un aumento di un’offerta privata di obbligazioni senior, comprendente 1 miliardo di dollari di senior note al 5,625% con scadenza 2031 e 900 milioni di dollari di senior note al 5,875% con scadenza 2034. L’offerta, inizialmente prevista per 850 milioni di dollari ciascuna, è stata ampliata per l’elevata domanda.
Il ricavato servirà principalmente a finanziare la prossima acquisizione di Parkland Corporation, insieme all’Offerta di Capitale Preferenziale annunciata in precedenza. Prima della chiusura dell’acquisizione, i fondi ridurranno temporaneamente gli utilizzi della linea di credito revolving. Le note prevedono una clausola speciale di rimborso obbligatorio se l’acquisizione di Parkland non si perfezionerà entro il 5 maggio 2026.
Sunoco LP (NYSE: SUN) ha colocado con éxito una emisión privada ampliada de bonos senior, que consiste en 1.000 millones de dólares en bonos senior al 5,625% con vencimiento en 2031 y 900 millones de dólares en bonos senior al 5,875% con vencimiento en 2034. La oferta, inicialmente prevista en 850 millones de dólares cada una, se incrementó por la demanda.
Los ingresos se destinarán principalmente a financiar la pendiente adquisición de Parkland Corporation, junto con la Oferta de Capital Preferente anunciada anteriormente. Antes del cierre de la adquisición, los fondos reducirán temporalmente los préstamos de la línea de crédito revolvente. Los bonos incluyen una disposición de redención obligatoria especial si la adquisición de Parkland no se completa antes del 5 de mayo de 2026.
Sunoco LP (NYSE: SUN)는 선순위 채권의 사모 증액 발행을 성공적으로 가격 결정했습니다. 이는 2031년 만기 연 5.625% 선순위 채권 10억 달러와 2034년 만기 연 5.875% 선순위 채권 9억 달러로 구성됩니다. 각 8.5억 달러로 계획되었던 당초 규모는 수요로 인해 증액되었습니다.
조달금은 주로 진행 중인 Parkland Corporation 인수 자금과 앞서 발표된 우선주 자본(Preferred Equity) 공모와 함께 사용됩니다. 인수 완료 전에는 자금이 일시적으로 회전 신용 한도 차입금을 상환하는 데 사용됩니다. 만약 Parkland 인수가 2026년 5월 5일까지 완료되지 않으면 특수한 의무 상환 조항이 적용됩니다.
Sunoco LP (NYSE: SUN) a réussi le placement d’une émission privée majorée d’obligations senior, composée de 1 milliard de dollars de senior notes à 5,625% échéance 2031 et de 900 millions de dollars de senior notes à 5,875% échéance 2034. L’offre, initialement prévue à 850 millions de dollars chacune, a été augmentée en raison de la demande.
Le produit servira principalement à financer la prochaine acquisition de Parkland Corporation, en complément de l’offre en capital préférentiel annoncée précédemment. Avant la clôture de l’acquisition, les fonds réduiront temporairement les emprunts au titre de la ligne de crédit renouvelable. Les notes prévoient une disposition spéciale de remboursement obligatoire si l’acquisition de Parkland n’est pas finalisée d’ici le 5 mai 2026.
Sunoco LP (NYSE: SUN) hat erfolgreich eine aufgestockte Privatplatzierung vorrangiger Schuldverschreibungen bepreist, bestehend aus 1 Mrd. USD 5,625% Senior Notes fällig 2031 und 900 Mio. USD 5,875% Senior Notes fällig 2034. Das Angebot, ursprünglich mit jeweils 850 Mio. USD geplant, wurde aufgrund der Nachfrage erhöht.
Der Erlös dient hauptsächlich zur Finanzierung der anstehenden Übernahme der Parkland Corporation sowie der zuvor angekündigten Vorzugsaktienplatzierung. Vor dem Abschluss der Übernahme werden die Mittel vorübergehend zur Reduzierung der Inanspruchnahme der revolvierenden Kreditfazilität verwendet. Die Notes enthalten eine spezielle Pflicht-Rückzahlungsregelung, falls die Parkland-Übernahme nicht bis zum 5. Mai 2026 abgeschlossen wird.
- Successfully upsized offering from initial $1.7B to $1.9B total, indicating strong investor demand
- Strategic financing secured for Parkland Corporation acquisition
- Special mandatory redemption provision protects investors if acquisition fails
- Additional debt burden with 5.625% and 5.875% interest rates
- Increased leverage from the combined notes offering of $1.9B
Insights
Sunoco's $1.9B upsized debt offering demonstrates strong market confidence while increasing leverage to fund Parkland acquisition.
Sunoco LP has successfully priced an upsized
The yield differential between the two tranches reflects the term premium, with only a
The inclusion of a special mandatory redemption provision offers investors protection if the Parkland acquisition falls through by May 2026. This debt-financed portion of the acquisition complements Sunoco's previously announced preferred equity offering, creating a balanced funding approach that distributes the financial burden across different capital instruments.
The successful upsizing indicates strong institutional appetite for Sunoco's credit, but investors should recognize this substantial debt issuance will increase the company's leverage ratios and interest expense in the near term. The strategic rationale for the Parkland acquisition will need to deliver sufficient operational synergies and cash flow enhancement to justify this significant increase in financial obligations.
Sunoco intends to use the net proceeds from this offering (i) on the closing date (the "Effective Date") of Sunoco's acquisition of all of the issued and outstanding common shares of Parkland Corporation ("Parkland" and such acquisition, the "Parkland Acquisition"), together with the net proceeds of the previously announced private offering of its Series A Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units (the "Preferred Equity Offering"), to fund a portion of the cash consideration for the Parkland Acquisition and related transaction costs, with the remaining proceeds, if any, to be used for general corporate purposes, and (ii) prior to the Effective Date, to temporarily reduce the borrowings outstanding under Sunoco's revolving credit facility and pay interest and fees in connection therewith. 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.
If (i) the Parkland Acquisition has not been completed on or prior to May 5, 2026 (the "Special Mandatory Redemption Date"), or (ii) prior to the Special Mandatory Redemption Date, (a) the Arrangement Agreement, dated as of May 4, 2025, among Sunoco, Parkland and certain of their respective affiliates, is terminated or (b) Sunoco will not pursue the completion of the Parkland Acquisition or has determined in its sole discretion that the completion of the Parkland Acquisition cannot or is not reasonably likely to be satisfied by the Special Mandatory Redemption Date, the notes will be subject to a special mandatory redemption at a price equal to
This 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
This news 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 prior to the registration or qualification under the securities laws of any such state or jurisdiction.
About Sunoco LP
Sunoco LP (NYSE: SUN) is an energy infrastructure and fuel distribution master limited partnership operating in over 40 U.S. states,
Forward-Looking Statements
This news release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law, including without limitation statements regarding this offering. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. An extensive list of factors that can affect future results are discussed in Sunoco's Annual Report on Form 10-K, any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K and other documents filed from time to time with the Securities and Exchange Commission. Sunoco undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
Contacts
Scott Grischow
Treasurer, Senior Vice President – Finance
(214) 840-5660, scott.grischow@sunoco.com
Brian Brungardt
Director – Investor Relations
(214) 840-5437, brian.brungardt@sunoco.com
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SOURCE Sunoco LP
FAQ
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