Published on 4/16/2024 in the Prospect News High Yield Daily.
New Issue: Sunoco prices $1.5 billion of five-, eight-year senior notes
By Paul A. Harris
Portland, Ore., April 16 – Sunoco LP priced $1.5 billion of senior notes (Ba3/BB/BB+) in two tranches in a Tuesday drive-by, according to market sources.
The deal included $750 million of eight-year notes that priced at par to yield 7¼%. The yield printed in the middle of yield talk in the 7¼% area. Initial talk was in the low-7% area.
The offering also included $750 million of five-year notes that priced at par to yield 7%. The yield printed in the middle of yield talk in the 7% area. Initial talk had the five-year notes coming 25 basis points inside of the eight-year notes.
The deal was heard to be playing to $2 billion of demand, slightly skewed toward the eight-year notes, a trader said.
Following its acquisition of NuStar Energy LP, the Dallas-based fuel distribution master limited partnership plans to use the proceeds repay the NuStar revolver and the NuStar receivables financing facility, to fund the NuStar subordinated notes redemption, and to fund the NuStar preferred units purchase.
| Issuer: | Sunoco LP
|
| Amount: | $1.5 billion
|
| Issue: | Senior notes
|
| Left bookrunner: | Truist Securities Inc.
|
| Joint bookrunners: | BofA Securities Inc., BBVA Securities Inc., CIBC World Markets Corp., Citigroup Global Markets Inc., Credit Agricole CIB, J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, Raymond James & Associates, RBC Capital Markets LLC, Regions Securities LLC, Santander US Capital Markets LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc., TD Securities (USA) LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Trade date: | April 16
|
| Settlement date: | April 30
|
| Ratings: | Moody’s: Ba3
|
| S&P: BB
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Drive-by
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | May 1, 2029
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Call protection: | Two years
|
| Price talk: | 7% area
|
|
|
| Eight-year notes
|
| Amount: | $750 million
|
| Maturity: | May 1, 2032
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Call protection: | Three years
|
| Price talk: | 7¼% area
|
|
|
© 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.
