Sunoco to sell $1.5 billion of notes in two parts in Tuesday drive-by

By Paul A. Harris

Portland, Ore., April 16 – Sunoco LP plans to price $1.5 billion of senior notes in a Tuesday drive-by, according to market sources.

The Rule 144A and Regulation S for life deal includes $750 million of eight-year notes that are non-callable for three years. Initial talk on the tranche is in the low-7% area.

The offering also includes $750 million of five-year notes with initial talk that has them coming 25 basis points inside of the eight-year notes. The five-year notes are non-callable for two years.

Truist Securities Inc. is the left bookrunner. 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 are joint bookrunners.

Following its acquisition of NuStar Energy LP, the Dallas-based fuel distribution master limited partnership plans to use the proceeds to 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.

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