Sunoco LP prices $1 billion in senior notes due 2033

Published 20/03/2025, 21:42
Sunoco LP prices $1 billion in senior notes due 2033

DALLAS - Sunoco LP (NYSE: SUN), a master limited partnership involved in energy infrastructure and fuel distribution, announced the pricing of a private offering of senior notes at an aggregate principal amount of $1 billion, with a 6.250% interest rate and a maturity date set for 2033. This offering, which was initially set at $750 million, has been upsized due to increased demand. The transaction is expected to close on March 31, 2025, pending customary closing conditions. Energy Transfer LP (NYSE: ET), Sunoco’s general partner, has demonstrated strong financial performance with an EBITDA of $14.36 billion in the last twelve months and maintains a healthy current ratio of 1.12, according to InvestingPro data.

The company plans to allocate the net proceeds from the sale of these notes towards the repayment of existing debts. Specifically, Sunoco intends to redeem all of NuStar Logistics, L.P.’s 5.750% senior notes due in 2025 and to pay down a portion of the outstanding borrowings under its revolving credit facility. For investors seeking deeper insights into Energy Transfer’s debt management and financial health, InvestingPro offers comprehensive analysis through its Pro Research Reports, available for over 1,400 US stocks.

The offering is directed exclusively towards qualified institutional buyers according to Rule 144A under the Securities Act and to non-U.S. persons in offshore transactions under Regulation S. The notes have not been registered under the Securities Act of 1933 or any state securities laws, and unless registered, cannot be sold in the United States except under an exemption from registration requirements.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the notes or any other securities, nor shall there be any sale of the notes or any other securities in any jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction. Additionally, it should not be considered as a notice of redemption for the NuStar 2025 Notes.

Sunoco LP operates extensively across the United States, Puerto Rico, Europe, and Mexico, maintaining roughly 14,000 miles of pipeline and over 100 terminals. Its general partner is owned by Energy Transfer LP (NYSE: ET), which boasts a substantial 6.86% dividend yield and has maintained dividend payments for 20 consecutive years. According to InvestingPro, Energy Transfer’s stock has delivered a 30.29% total return over the past year, with analysts setting price targets ranging from $19 to $25 per share.

The information provided in this article is based on a press release statement by Sunoco LP.

In other recent news, Evertz Technologies reported its third-quarter financial results, revealing an earnings per share (EPS) of $0.27, which fell short of the anticipated $0.37. The company’s revenue reached $136.9 million, reflecting a modest 1% increase from the previous year. Despite the revenue growth, the earnings miss has raised concerns among investors. Evertz continues to focus on expanding its U.S. manufacturing capabilities and developing IP-based solutions, amid potential challenges posed by U.S.-Canada tariffs. Meanwhile, Sunoco LP announced a private offering of $750 million in senior notes due 2033, intending to use the proceeds to address existing debt obligations. This move will allow Sunoco to redeem the 5.750% senior notes due in 2025 issued by NuStar Logistics, L.P., and reduce borrowings under its revolving credit facility. The offering is targeted at qualified institutional buyers and non-U.S. persons outside the United States. Both companies are navigating complex financial landscapes, with Sunoco focusing on debt management and Evertz addressing manufacturing and tariff-related challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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