Sunoco LP on March 14 completed a private offering of $600 million of 6.000% senior notes due 2027, with proceeds to be used to pay off some of the outstanding borrowings under its $1.5 billion revolving credit facility.
Net proceeds from the offering totaled about $593 million, after discount and commissions and estimated offering expenses, according to a same-day SEC filing. Interests on the notes, which will mature April 15, 2027, can be paid April 15 and Oct. 15 of each year, beginning Oct. 15.
Sunoco and its subsidiary Sunoco Finance Corp., which serves as co-issuer of the notes, have the option to redeem up to 35% of the notes before April 15, 2022, at 106.000% of the principal amount plus interest. They may also redeem the notes before the date at 100% of the principal amount with an "applicable premium" and interest.
Sunoco distributes motor fuel to dealers, customers and distributors in more than 30 states.
Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, Barclays Capital Inc., BBVA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Merrill Lynch Pierce Fenner & Smith Inc., Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., Natixis Securities Americas LLC, RBC Capital Markets LLC, SMBC Nikko Securities America Inc., TD Securities (USA) LLC, and Wells Fargo Securities LLC were joint book-running managers for the offering.