EnergyTransfer Partners LP has completed the of the remaining 68.42%interest in Sunoco LLCand 100% interest in Sunoco Retail LLC to Sunoco LP for about $2.23 billion, effective Jan. 1,according to the partnerships' March 31 news release.
The transaction is expected to be accretive to Sunoco's distributablecash flow and expected distributions per unit beginning this 2016.
Sunoco paid Energy Transfer about $2.2 billion in cash,including the expected value of working capital, and issued 5,710,922 millionSunoco common units to Energy Transfer. Sunoco's issued common units are valuedat approximately $194 million, based on the common units' five-dayvolume-weighted average price as of Nov. 13, 2015.
To fund a portion of the cash consideration for theacquisition, Sunoco entered into a senior secured term loan facility of about$2.04 billion, while the remaining portion was funded with borrowings underSunoco's revolving credit facility.
Concurrent with the closing of the acquisition, Sunococompleted its sale of 2,263,518 common units to Energy Transfer Equity LP andreceived $64.5 million in proceeds, which were used to repay borrowings underSunoco's revolving credit facility.
The dropdown completes $5.7 billion of dropdowns from EnergyTransfer to Sunoco since the fourth quarter of 2014, the release said.