#USA #Dallas #Series A #Sunoco LP #preferred equity

Sunoco LP Announces Upsized Preferred Equity Offering Pricing

DALLAS, Sept. 4, 2025 - Sunoco LP (NYSE: SUN) has officially announced the pricing of its private offering of preferred equity, confirming the sale of 1.5 million units of its 7.875% Series A Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units. Each unit is priced at $1,000, bringing the total gross proceeds to $1.5 billion before related costs.

This offering marks a significant upsizing from the initially proposed amount of 1 million units, reflecting strong investor demand. The completion of this transaction is anticipated to occur on September 18, 2025, pending the fulfillment of customary closing conditions.

Purpose of the Offering

The funds procured from this offering will primarily facilitate Sunoco’s acquisition of Parkland Corporation, a strategic move aimed at enhancing its market position. Specifically, the net proceeds will be coordinated with funds from prior private offerings of senior notes to cover a portion of the cash required for the acquisition. Additionally, any remaining funds will aid Sunoco in settling related transaction costs or, if necessary, reducing outstanding borrowings under its revolving credit facility.

Furthermore, Sunoco underscores that this offering is not contingent upon the successful completion of the Parkland Acquisition or associated note offerings, ensuring that both initiatives can proceed independently.

Key Features of the Preferred Units

Investors will earn distributions on the Series A Preferred Units, which will occur semi-annually on March 18 and September 18 each year starting from March 2026. These distributions will accumulate at an impressive rate of 7.875% per annum until the first reset date on September 18, 2030. After this date, the rate will reset based on the Five-Year U.S. Treasury Rate plus a margin of 4.230%.

Moreover, these units will have redemption features allowing Sunoco to buy back the units at the set price, along with any unpaid distributions, under certain conditions. However, the Series A Preferred Units cannot be converted into other securities and come with limited voting rights.

Regulatory Compliance

It is crucial to note that the Series A Preferred Units will not be registered under the Securities Act of 1933 or any similar state laws. As a result, these units may only be marketed and sold to qualified institutional buyers under specific exemptions. Sunoco has reassured potential investors that this transaction complies fully with the applicable regulations.

Conclusion

With its deep-rooted infrastructure and considerable experience in the energy sector, Sunoco LP continues to strengthen its operations. The upsized preferred equity offering not only showcases investor confidence but also underlines Sunoco's growth trajectory as it seeks to amplify its market presence through strategic acquisitions, such as that of Parkland Corporation. As the energy landscape evolves, Sunoco remains committed to enhancing its capital structure while delivering substantial value to its stakeholders.

For further information regarding this offering or Sunoco's strategic initiatives, interested parties can refer to Sunoco’s investor relations contacts provided in the official announcement.