Sunoco to price $500 million five-year notes in Monday drive-by, to refinance bank debt

By Paul A. Harris

Portland, Ore., April 4 – Sunoco LP and Sunoco Finance Corp. plan to price a $500 million offering of five-year senior notes (//BB) on Monday trailing a late-morning conference call with investors, according to a syndicate source.

Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, BBVA, TD Securities, Citigroup Global Markets Inc., Credit Agricole CIB, Deutsche Bank Securities Inc., DNB, Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Natixis, PNC Capital Markets, RBC Capital Markets and Wells Fargo Securities LLC are the joint bookrunners for the Rule 144A and Regulation S with registration rights offering.

The notes become callable after two years at par plus 50% of the coupon and feature a two-year 35% equity clawback and a 101% poison put.

The Houston-based limited partnership plans to use the proceeds to refinance a portion of its term loan A.

Sunoco is engaged in fee-based wholesale distribution of motor fuels, the retail sale of motor fuels and the operation of convenience stores.

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