Fiserv earnings missed by $0.61, revenue fell short of estimates
Sunoco LP (NYSE:SUN), with a market capitalization of $6.87 billion, announced Thursday it has completed a private offering totaling $2.9 billion to help finance its pending acquisition of Parkland Corporation. The information is based on a statement in a recent SEC filing. According to InvestingPro data, the company currently maintains a Fair Value rating suggesting it trades near its intrinsic value.
The financing includes $1 billion in 5.625% senior notes due 2031 and $900 million in 5.875% senior notes due 2034. Sunoco received approximately $1.88 billion in net proceeds from these notes after deducting discounts and commissions. The company also closed a private offering of Series A Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units, raising about $1.48 billion in net proceeds from the sale of 1.5 million units. With total debt of $8.34 billion and a debt-to-equity ratio of 2.04, InvestingPro analysis indicates the company maintains a FAIR financial health score of 2.38.
Sunoco stated it intends to use the proceeds from both offerings to fund part of the cash consideration and transaction costs for the Parkland acquisition. Any remaining proceeds may be used for general corporate purposes. Until the acquisition closes, the funds will be used to temporarily reduce borrowings under Sunoco’s revolving credit facility and pay related interest and fees.
The senior notes are unsecured obligations of Sunoco and are guaranteed on a senior unsecured basis by certain subsidiaries. The notes are subject to a special mandatory redemption if the Parkland acquisition does not close by May 5, 2026, or if Sunoco determines the transaction will not proceed.
The Series A Preferred Units carry an annual distribution rate of 7.875% until September 18, 2030, after which the rate will reset based on the five-year U.S. Treasury rate plus a spread of 4.230%. These units have a liquidation preference of $1,000 per unit and are senior to Sunoco’s common units with respect to distributions and liquidation rights. They are also subject to mandatory redemption if the Parkland transaction is not completed by the specified date.
In connection with the offerings, Sunoco terminated all remaining commitments under previously disclosed debt financing arrangements with Barclays Bank PLC, Royal Bank of Canada, and other parties.
Sunoco’s acquisition of Parkland remains subject to customary closing conditions, including regulatory and stock exchange approvals. No assurance was given regarding the timing or completion of the transaction.
In other recent news, Sunoco Inc. reported strong financial results for the second quarter of 2025, with record adjusted EBITDA. This performance underscores the company’s growth trajectory and strong position in the fuel distribution market. Additionally, Sunoco highlighted strategic acquisitions that contribute to its expanding operations. Analysts have taken note of the company’s robust financial metrics and future outlook, although no immediate stock movement was observed. These developments reflect Sunoco’s focus on strengthening its market presence and operational capabilities. The company’s strategic initiatives and financial performance have drawn attention from various investment analysts. While specific stock recommendations were not mentioned, the financial community is observing Sunoco’s progress closely. These updates provide investors with key insights into the company’s recent activities and financial health.
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