#USA #Dallas #Senior Notes #Sunoco LP #Parkland Acquisition

Sunoco LP Announces Pricing of Upsized Private Offering of Senior Notes

In a strategic move to bolster its financial standing, Sunoco LP (NYSE: SUN) has successfully priced an upsized private offering of senior notes. This comprehensive offering includes 5.625% senior notes with a maturity date in 2031, amounting to an aggregate principal of $1 billion, alongside 5.875% senior notes due in 2034, totaling $900 million. This offering, which has been upsized from the initial projections of $850 million for each set of notes, underscores Sunoco's confidence in their upcoming ventures.

The private offering is expected to conclude on September 18, 2025, contingent upon meeting the standard closing conditions. Sunoco plans to allocate the net proceeds from this offering to support the proposed acquisition of Parkland Corporation. This acquisition represents a significant step in Sunoco’s strategy to expand its operational foothold while enhancing its market presence within the energy infrastructure sector.

Strategic Utilization of Proceeds

Upon finalizing the acquisition of Parkland, Sunoco intends to utilize its proceeds, along with those from a recently announced private offering of Series A Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units, to fund a significant portion of the cash consideration associated with the Parkland Acquisition. Sunoco also aims to cover related transaction costs with the remaining proceeds.

Before the acquisition, however, Sunoco plans to use some of the proceeds to temporarily reduce the existing borrowings under its revolving credit facility, enabling more effective financial management. Notably, this offering is structured so that it is not contingent upon the completion of either the Parkland Acquisition or the Preferred Equity Offering, demonstrating a solid financial strategy moving forward.

Special Redemption Terms

An interesting aspect of this offering involves special redemption terms. Should the acquisition not be completed by May 5, 2026, or if certain conditions surrounding the agreement are not met prior to that date, the notes could be subjected to a special mandatory redemption. This redemption would occur at a price reflecting the initial issue price plus any accrued interest, which speaks to the structured risk management measures in place.

Compliance and Registration Considerations

As a private offering, it is crucial to note that these senior notes have not been registered under the Securities Act of 1933 or any associated state laws. Consequently, the notes will only be made available to qualified institutional investors as outlined in Rule 144A under the Securities Act, and to non-U.S. persons in accordance with Regulation S. This strategic approach to compliance minimizes potential barriers while still enabling effective market engagement.

About Sunoco LP

Sunoco LP operates as a prominent energy infrastructure and fuel distribution master limited partnership, extending its services across over 40 U.S. states, in Puerto Rico, throughout Europe, and into Mexico. The company maintains an extensive pipeline network approaching 14,000 miles, complemented by a robust terminal system exceeding 100 locations dedicated to midstream operations. Sunoco's general partner is managed under Energy Transfer LP, highlighting its integral role within the larger energy distribution landscape.

Conclusion

Sunoco LP's recent announcement concerning their senior notes offering signals a pivotal advancement in their strategic growth initiatives, particularly regarding the anticipated acquisition of Parkland Corporation. The financial structuring and outlined strategic goals are indicative of Sunoco's proactive measures to secure its position in the competitive energy market while paving the way for further expansion and development in the coming years. Through careful financial management and acquisition strategies, Sunoco LP continues to fortify its standing within the energy sector, driving robust operational efficiency and sustained growth.