Sunoco to price $500 million eight-year notes in Monday drive-by

By Paul A. Harris

Portland, Ore., March 11 – Sunoco LP plans to price a $500 million offering of eight-year senior notes (existing ratings B1/BB-/BB) in a quick-to-market Monday trade following a mid-morning conference call with investors, according to market sources.

Initial talk has the deal shaping up to yield in the low 6% area, a trader said.

Left lead bookrunner Goldman Sachs & Co. LLC will bill and deliver. Mizuho Securities USA Inc. is also a lead bookrunner.

BofA Merrill Lynch, Barclays, BBVA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG, Natixis, RBC Capital Markets LLC, SMBC Nikko Securities America Inc., TD Securities (USA) LLC and Wells Fargo Securities LLC are additional bookrunners.

The Rule 144A and Regulation S with registration rights notes become callable after three years at par plus 50% of the coupon.

The Houston-based wholesale distributor of motor fuels, retailer of motor fuels and operator of convenience stores plans to use the proceeds to pay down its revolving credit facility.

Sunoco Finance Corp., a wholly owned direct subsidiary of Sunoco, will be the co-issuer.

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