Sunoco offers to buy all outstanding 5½% senior notes due 2026

Chicago, Oct. 5 – Sunoco LP started a tender offer for cash for all of its $800 million outstanding 5½% senior notes due 2026 (Cusip: 86765LAL1), according to a press release and a document.

The company is offering a total consideration of $1,029.50 per $1,000 note, inclusive of a $30 early tender payment for noteholders who tender notes by the early deadline.

Interest will also be paid to either the early or the final settlement date.

The early deadline is 5 p.m. ET on Oct. 19, also the withdrawal and revocation deadline.

The final expiration time is midnight ET on Nov. 2.

Early settlement is planned for Oct. 20 and final settlement is expected for Nov. 3.

The offer is contingent upon the completion of a new debt financing.

Sunoco is also soliciting consents to amend the indenture governing the notes. The amendment would shorten the minimum notice periods under the indenture for the optional redemption of the notes. A majority of consents are necessary to adopt the changes.

Holders who tender their notes will be deemed to have given consent.

The company also issued a notice of redemption for any notes that are outstanding after the tender offer. Investors will receive 102.75 plus interest, in accordance with the indenture. However, if the requisite consents are obtained by the early deadline, Sunoco intends to issue a notice of redemption to any holders of outstanding notes on the early settlement date.

Citigroup Global Markets Inc. (800 558-3745, 212 723-6106) and MUFG Securities Americas Inc. (877 744-4532, 212 405-7481) are the dealer managers and solicitation agents.

D.F. King & Co., Inc is the information and tender agent for the offer (800 817-5468, 212 269-5550, sunoco@dfking.com).

Sunoco is a Dallas-based wholesale distributor of motor fuels, retailer of motor fuels and operator of convenience stores.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.