New Issue: Sunoco prices $800 million eight-year notes at par to yield 6 3/8%

By Paul A. Harris

Portland, Ore., March 27 – Sunoco LP and Sunoco Finance Corp. priced an $800 million issue of eight-year senior notes (Ba3/BB/BB) at par to yield 6 3/8% on Friday, according to a syndicate source.

The yield printed on top of yield talk.

BofA Merrill Lynch was the left bookrunner. Credit Suisse Securities (USA) LLC was the joint bookrunner.

The Houston-based master limited partnership plans to use the proceeds to fund the acquisition of a 31.58% membership interest in Sunoco, LLC from a wholly owned subsidiary of Energy Transfer Partners, LP and to repay revolver debt.

Sunoco primarily distributes motor fuel to convenience stores, independent dealers, commercial customers and distributors, and also operates convenience stores and retail fuel sites.

Issuers:	Sunoco LP and Sunoco Finance Corp.
Amount:	$800 million
Maturity:	April 1, 2023
Securities:	Senior notes
Left bookrunner:	BofA Merrill Lynch
Joint bookrunner:	Credit Suisse Securities (USA) LLC
Co-managers:	BBVA, MUFG, DNB Markets, Mizuho Securities, SMBC Nikko, SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc., BMO Securities, BNP Paribas Securities Corp., Credit Agricole CIB, ING
Coupon:	6 3/8%
Price:	Par
Yield:	6 3/8%
Spread:	456 bps
Call protection:	Three years
Trade date:	March 27
Settlement date:	April 1
Ratings:	Moody's: Ba3
	Standard & Poor's: BB
	Fitch: BB
Distribution:	Rule 144A and Regulation S
Price talk:	6 3/8% area
Marketing:	Roadshow

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