Sunoco gets $1.6 billion bridge loan to refinance NuStar assumed debt

By Mary-Katherine Stinson

Lexington, Ky., Jan. 22 – Sunoco LP secured a $1.6 billion 364-day bridge term loan to refinance NuStar Energy LP’s debt, according to a press release and an 8-K filing with the Securities and Exchange Commission on Monday morning.

The companies jointly announced that they reached a definitive agreement whereby Sunoco will acquire NuStar in an all-equity transaction valued at approximately $7.3 billion, including assumed debt.

The new bridge term loan will be used by Sunoco to refinance NuStar’s series A, B and C preferred units, subordinated notes, revolving credit facility and receivables financing agreement.

Truist and Bank of America provided committed financing.

The transaction has been unanimously approved by the board of directors of both companies and is expected to close in the second quarter of 2024. The deal is subject to the satisfaction of closing conditions, including the approval of NuStar’s unitholders.

The Dallas-based master limited partnership’s core operations include the distribution of motor fuel.

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