Sunoco Announces $1.75 Bln Private Offering Of Senior Notes - Quick Facts

(RTTNews) - Sunoco LP (SUN) announced a private offering of senior notes due 2023, senior notes due 2026 and senior notes due 2028 in an aggregate principal amount of $1.75 billion. Sunoco Finance Corp., a wholly owned direct subsidiary of Sunoco, will serve as co-issuer of the notes.

Sunoco said it intends to use the net proceeds from the offering, together with the consideration it receives from its previously announced sale of certain company-operated retail fuel outlets to 7-Eleven, Inc., to redeem in full its 5.500 percent senior notes due 2020 at a call premium of 102.750 percent plus accrued and unpaid interest.

The company will also redeem each of its 6.250 percent senior notes due 2021 as well as 6.375 percent senior notes due 2023 at a make-whole premium plus accrued and unpaid interest.

In addition, Sunoco intends to repay in full and terminate its existing senior secured term loan agreement, repay a portion of the outstanding borrowings under its existing $1.5 billion revolving credit facility, pay all closing costs and taxes in connection with the 7-Eleven Transaction, redeem all of its outstanding Series A Preferred Units, and also fund the repurchase of a portion of its outstanding common units.