Sunoco sets talk in $1.75 billion three-part senior notes offering; pricing Tuesday

By Paul A. Harris

Portland, Ore., Jan. 9 – Sunoco LP and Sunoco Finance Corp. set price talk in a $1.75 billion three-part offering of senior notes (Ba1/BB-/BB), according to a syndicate source.

The deal, with talk, is structured as follows:

• $500 million minimum of notes due January 2023, which come with two years of call protection, at price talk of 5% to 5¼%;

• $500 million minimum of notes due February 2026, which come with three years of call protection, at price talk of 5½% to 5¾%; and

• $400 million minimum of notes due March 2028, which come with five years of call protection, at price talk of 5¾% to 6%.

Books close at 12:30 p.m. ET, and the Rule 144A and Regulation S with registration rights deal is set to price thereafter.

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.

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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