Sunoco LP Announces Private Offering of Senior Notes
Sunoco (NYSE: SUN) has announced a private offering of senior notes, consisting of $850 million in notes due 2031 and $850 million in notes due 2034. The proceeds will primarily fund the cash consideration for Sunoco's acquisition of Parkland Corporation and temporarily reduce revolving credit facility borrowings.
The notes include a special mandatory redemption provision if the Parkland Acquisition is not completed by May 5, 2026, or if the arrangement agreement is terminated. The offering is restricted to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S of the Securities Act.
Sunoco (NYSE: SUN) ha annunciato un collocamento privato di obbligazioni senior, composto da 850 milioni di dollari con scadenza 2031 e 850 milioni di dollari con scadenza 2034. I proventi saranno utilizzati principalmente per il pagamento in contanti dell'acquisizione di Parkland Corporation da parte di Sunoco e, temporaneamente, per ridurre gli utilizzi della linea di credito revolving.
Le obbligazioni prevedono una clausola di rimborso obbligatorio speciale qualora l'acquisizione di Parkland non venga completata entro il 5 maggio 2026 o nel caso di risoluzione dell'accordo. L'offerta è riservata a investitori istituzionali qualificati ai sensi della Rule 144A e a soggetti non statunitensi ai sensi della Regulation S del Securities Act.
Sunoco (NYSE: SUN) ha anunciado una oferta privada de bonos senior, consistente en 850 millones de dólares con vencimiento en 2031 y 850 millones de dólares con vencimiento en 2034. Los ingresos se destinarán principalmente a financiar la contraprestación en efectivo por la adquisición de Parkland Corporation por parte de Sunoco y, de forma temporal, a reducir 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, o si el acuerdo queda terminado. La oferta está limitada a compradores institucionales calificados conforme a la Rule 144A y a personas no estadounidenses según la Regulation S del Securities Act.
Sunoco (NYSE: SUN)는 시니어 채권의 사모 발행을 발표했으며, 2031년 만기 8억5천만 달러와 2034년 만기 8억5천만 달러로 구성됩니다. 수익금은 주로 Sunoco의 Parkland Corporation 인수에 대한 현금 대가 자금조달과 일시적으로 회전 신용시설 차입금 축소에 사용될 예정입니다.
해당 채권에는 Parkland 인수가 2026년 5월 5일까지 완료되지 않거나 합의가 해지되는 경우 발동되는 특별 의무 상환 조항이 포함되어 있습니다. 이번 발행은 증권법상의 Rule 144A에 따른 적격 기관투자자와 Regulation S에 따른 비미국인에게 한정됩니다.
Sunoco (NYSE: SUN) a annoncé une émission privée d'obligations senior, composée de 850 millions de dollars arrivant à échéance en 2031 et de 850 millions de dollars arrivant à échéance en 2034. Le produit servira principalement à financer le paiement en espèces pour l'acquisition de Parkland Corporation par Sunoco et, temporairement, à réduire les emprunts au titre de la facilité de crédit renouvelable.
Les obligations comportent une clause de remboursement obligatoire spéciale si l'acquisition de Parkland n'est pas finalisée avant le 5 mai 2026 ou si l'accord est résilié. L'offre est réservée aux investisseurs institutionnels qualifiés selon la Rule 144A et aux personnes non américaines selon la Regulation S du Securities Act.
Sunoco (NYSE: SUN) hat eine Privatplatzierung von Senior-Notes angekündigt, bestehend aus 850 Millionen US-Dollar fällig 2031 und 850 Millionen US-Dollar fällig 2034. Die Mittel werden hauptsächlich zur Finanzierung der Barzahlung für Sunocos Übernahme der Parkland Corporation und vorübergehend zur Reduzierung von Inanspruchnahmen der revolvierenden Kreditfazilität verwendet.
Die Notes enthalten eine besondere obligatorische Rückzahlungsbestimmung, falls die Parkland-Akquisition nicht bis zum 5. Mai 2026 abgeschlossen wird oder das Abkommen beendet wird. Das Angebot ist auf qualifizierte institutionelle Käufer nach Rule 144A und auf Nicht-US-Personen nach Regulation S des Securities Act beschränkt.
- Total offering size of $1.7 billion demonstrates strong capital raising capability
- Strategic acquisition of Parkland Corporation will expand business operations
- Flexible financing structure with temporary use of proceeds to reduce credit facility borrowings
- Increased debt burden with two new senior notes issuances
- Potential mandatory redemption risk if Parkland acquisition fails
- Additional interest expenses from new debt obligations
Insights
Sunoco's $1.7B debt offering finances its Parkland acquisition, increasing leverage but potentially expanding operations substantially.
Sunoco LP is undertaking a substantial $1.7 billion debt offering through two tranches of senior notes - $850 million due in 2031 and $850 million due in 2034. This significant capital raise, combined with a concurrent Preferred Equity Offering, directly supports Sunoco's pending acquisition of Parkland Corporation, announced in May 2025.
The debt structure includes a crucial contingency mechanism - a special mandatory redemption provision that protects note holders if the Parkland acquisition fails to close by May 2026 or is terminated, allowing for redemption at 100% of the issue price plus accrued interest. This provision effectively derisks the notes somewhat for institutional investors should the acquisition not materialize.
Critically, this financing approach reveals management's strategic preference for a balanced capital structure utilizing both debt and preferred equity rather than common equity or solely debt to fund the acquisition. This likely preserves earnings per share for existing common unitholders while maintaining financial flexibility. The substantial size of this debt offering indicates the transformative nature of the Parkland acquisition for Sunoco's operations and financial profile.
The offering's Rule 144A structure, targeting qualified institutional buyers, aligns with standard practice for expedited capital raises of this magnitude. The non-contingent nature of this offering on the Parkland acquisition's completion suggests confidence in the company's ability to temporarily deploy or refinance the capital if needed, though it also creates potential short-term balance sheet complexity.
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 concurrently 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 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
How much is Sunoco's (SUN) senior notes offering in 2025?
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When is the special mandatory redemption date for Sunoco's 2025 notes?
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Is Sunoco's notes offering contingent on the Parkland acquisition?
