HOUSTON – Related to Energy Transfer Partners’ (ETP) dropdown of 100% of Susser Holdings Corp. to Sunoco LP for approximately $1.934 billion, Sunoco LP said that it has priced its registered underwritten public offering of 5.5 million common units representing limited partner interests, pursuant to an effective statement filed with the Securities & Exchange Commission (SEC), at $40.10 per common unit.
It expects the offering to close on or about July 21, 2015.
The partnership granted the underwriters a 30-day option to purchase up to 825,000 additional common units.
It intends to use the net proceeds from the offering, and from the underwriters’ exercise of their option to purchase additional common units, if applicable, to repay borrowings outstanding under its revolving credit facility and for general partnership purposes.
And the partnership intends to use borrowings under its revolving credit facility, along with the net proceeds from the concurrent private placement of $600 million of aggregate principal amount of senior notes due 2020, to help fund the cash consideration in its pending acquisition of 100% of the issued and outstanding shares of Susser Holdings.
Sunoco LP also has announced that it has priced at 100% an upsized private offering of $600 million in aggregate principal amount of 5.5% senior notes due 2020.
This represents a $100-million increase in the original offering amount announced earlier in the day.
Sunoco Finance Corp., a wholly owned direct subsidiary of Sunoco, will serve as co-issuer of the notes. The company expects the sale of the notes to settle on July 20, 2015, subject to the satisfaction of customary closing conditions. Net proceed are expected to total $592.5 million.
Sunoco intends to use the net proceeds from the offering, together with borrowings under its revolving credit facility, to help fund the cash consideration for its acquisition of 100% of Susser Holdings.