Sunoco to sell $1.75 billion senior notes in three parts on Tuesday

By Paul A. Harris

Portland, Ore., Jan. 8 – Sunoco LP and Sunoco Finance Corp. plan to price $1.75 billion of senior notes in three tranches on Tuesday, according to a syndicate source.

The offer features $500 million minimum of notes due January 2023, which come with two years of call protection, $500 million minimum of notes due February 2026, which come with three years of call protection, and $400 million minimum of notes due March 2028, which come with five years of call protection.

The deal was scheduled to be shopped by means of a mid-morning conference call with investors on Monday.

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

The call premiums for all of the notes will be set at par plus 50% of the coupons. The notes all feature 35% equity clawbacks and 101% poison puts.

The Dallas-based wholesale distributor of motor fuels and other petroleum products plans to use the proceeds to repay debt.

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