Sunoco launches exchange offers for Parkland Corporation notes

DALLAS - Sunoco LP (NYSE:SUN), a major player with $80.58 billion in annual revenue and currently rated "GOOD" by InvestingPro’s Financial Health Score, announced Monday the commencement of private exchange offers for Canadian dollar and U.S. dollar denominated notes previously issued by Parkland Corporation. The exchange offers are part of Sunoco’s planned acquisition of Parkland.

The exchange offers cover six series of Parkland notes with a combined value of approximately C$1.6 billion and US$2.6 billion. Sunoco, maintaining a solid current ratio of 1.15 and managing a debt-to-equity ratio of 1.96, is offering to exchange these notes for new Sunoco-issued notes with substantially identical interest rates, payment dates, maturity dates and redemption terms.

Holders who tender their notes by the early participation deadline of October 20, 2025, will receive the full principal amount in new notes plus a cash payment of C$2.50 or US$2.50 per C$1,000 or US$1,000 of notes, respectively. Those tendering after the early deadline but before the November 4, 2025 expiration date will receive 95% of the principal amount in new notes.

Concurrently, Sunoco is soliciting consents from eligible holders to amend the indentures governing the Parkland notes, eliminating most restrictive covenants and certain default provisions. These amendments require consent from holders of at least a majority in principal amount of each series.

Settlement is expected promptly following the expiration date. The exchange offers are contingent upon several conditions, including the completion of Sunoco’s acquisition of Parkland, which cannot be waived. For investors seeking deeper insights into Sunoco’s financial position and growth prospects, InvestingPro offers comprehensive analysis including 10+ additional ProTips and detailed valuation metrics in its Pro Research Report.

The new notes have not been registered under the Securities Act of 1933 and will be subject to restrictions on transferability and resale. Only qualified institutional buyers and certain non-U.S. persons are eligible to participate in the exchange offers.

Citigroup Global Markets Inc. and TD Securities (USA) LLC are serving as dealer managers for the exchange offers, according to the press release statement.

In other recent news, Energy Transfer LP is nearing a deal to sell liquefied natural gas from its planned Lake Charles export terminal in Louisiana to MidOcean Energy, a unit of EIG Global Energy Partners. The agreement would build on a preliminary arrangement where MidOcean committed to fund 30% of the construction costs in exchange for rights to 30% of the LNG production, approximately 5 million metric tons annually. Meanwhile, Darling Ingredients has been added to Raymond James’ Analyst Current Favorites list, replacing Energy Transfer. Raymond James highlighted Darling Ingredients’ business lines in Feed and Food as advantageous for its sustainable fuels business, which could drive integration value over time.

In other developments, Sunoco LP and Parkland Corporation have announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act for their pending acquisition deal. Sunoco is expected to acquire Parkland in the fourth quarter of 2025, pending further regulatory approvals and closing conditions. To fund the acquisition, Sunoco has priced a $1.9 billion offering of senior notes and launched a $1 billion preferred units offering. The proceeds from these financial maneuvers will help finance the acquisition and temporarily reduce borrowings under Sunoco’s revolving credit facility.

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