Sunoco LP Announces Private Offering of Senior Notes

Rhea-AI Summary

Sunoco LP (NYSE: SUN) has announced a private offering of $750 million in senior notes due 2033. The Partnership plans to utilize the net proceeds to address existing debt obligations, specifically by:

• Redeeming NuStar Logistics' 5.750% senior notes due 2025 in full
• Repaying a portion of outstanding borrowings under Sunoco's revolving credit facility

The notes offering will be restricted to qualified institutional buyers under Rule 144A and non-U.S. persons through Regulation S of the Securities Act. The offering has not been registered under the Securities Act of 1933 or state securities laws, limiting its availability to exempt transactions.

Positive

• Debt refinancing strategy to address upcoming 2025 maturity
• Potential reduction in interest expenses through new debt structure
• Strengthening of balance sheet through debt management

Negative

• Increases long-term debt obligations through 2033
• offering accessibility due to private placement nature

News Market Reaction – SUN

-1.13%

1 alert

-1.13% News Effect

On the day this news was published, SUN declined 1.13%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

DALLAS, March 20, 2025 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco" or the "Partnership") today announced a private offering (the "offering") of senior notes due 2033 in an aggregate principal amount of $750 million (the "notes").

Sunoco intends to use the net proceeds from the offering to repay indebtedness, including by redeeming in full NuStar Logistics, L.P.'s 5.750% senior notes due 2025 (the "NuStar 2025 Notes") and repaying a portion of the outstanding borrowings under Sunoco's revolving credit facility.

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. Sunoco plans to offer and sell the notes only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act.

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. Additionally, this news release shall not constitute a notice of redemption under the indenture governing the NuStar 2025 Notes.

About Sunoco LP

Sunoco LP (NYSE: SUN) 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 (NYSE: ET).

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 the 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 and any 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 

Erik Gulbrandsen
Director – Investor Relations and Capital Markets
(214) 840-5684, erik.gulbrandsen@sunoco.com 

 

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SOURCE Sunoco LP

FAQ

What is the size and purpose of Sunoco LP's (SUN) new senior notes offering in 2033?

Sunoco LP is offering $750 million in senior notes due 2033 to repay existing debt, including NuStar's 2025 notes and revolving credit facility borrowings.

Who can participate in Sunoco LP's (SUN) 2033 senior notes private offering?

The offering is to qualified institutional buyers under Rule 144A and non-U.S. persons through Regulation S of the Securities Act.

How will Sunoco LP (SUN) use the proceeds from the $750M senior notes offering?

Proceeds will be used to redeem NuStar Logistics' 5.750% senior notes due 2025 and reduce revolving credit facility debt.

What are the registration requirements for Sunoco LP's (SUN) 2033 senior notes?

The notes are not registered under the Securities Act of 1933 and can only be sold through exemptions from registration requirements.