Sunoco closes $1.5 billion five-year amended, restated revolver

By Wendy Van Sickle

Columbus, Ohio, April 7 – Sunoco LP amended and restated its $1.5 billion revolving credit agreement with Bank of America, NA as administrative agent on Thursday, according to an 8-K filed with the Securities and Exchange Commission.

The revolver expires on April 7, 2027 and restates the company’s existing revolver dated July 27, 2018.

The revolver includes an accordion feature that provides flexibility to increase the credit facility up to an additional $550 million, subject to additional lender commitments.

Outstanding borrowings bear interest at term SOFR plus a margin ranging from 125 basis points to 225 bps, with the commitment fee ranging from 25 bps to 35 bps, both depending on the leverage ratio. In the event Sunoco achieves and investment grade credit rating, the margin will drop to a range of 112.5 bps to 175 bps.

The company must maintain a maximum net leverage ratio of 5.5x and a minimum consolidated interest coverage ratio of 2.25x.

Bank of America, Barclays, Citibank, NA, Credit Agricole CIB, Goldman Sachs Bank USA, JPMorgan Chase Bank, NA, Mizuho Bank, Ltd., MUFG Bank, Ltd., PNC Bank, NA, Royal Bank of Canada, Sumitomo Mitsui Banking Corp., Toronto-Dominion Bank, New York Branch, Truist Bank and Wells Fargo Bank, NA are the lead arrangers and bookrunners.

Barclays, Citibank, Credit Agricole, Goldman, JPMorgan, Mizuho, MUFG, PNC, Royal Bank of Canada, Sumitomo, Toronto-Dominion, Truist and Wells Fargo are the co-documentation agents.

Borrowings may be used for working capital, purchases of equity interests and general corporate purposes.

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

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