Sunoco to price $800 million of notes in two tranches on Tuesday

By Paul A. Harris

Portland, Ore., Oct. 5 – Sunoco LP and Sunoco Finance Corp. plan to price an $800 million drive-by offering of senior notes (expected ratings B1/BB-/BB) in two tranches on Tuesday trailing a conference call with investors, according to market sources.

The deal features notes due April 2030, callable after 3.5 years at par plus 50% of the coupon, and notes due April 2032, callable after 5.5 years at par plus 50% of the coupon. Tranche sizes remain to be determined.

Citigroup Global Markets Inc. is the left bookrunner for the Rule 144A and Regulation S with registration rights offering. MUFG, Barclays, BofA Securities Inc., CIBC World Markets Corp., Credit Agricole CIB, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, RBC Capital Markets LLC, Regions Securities LLC, SMBC Nikko Securities America Inc., TD Securities (USA) LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are the joint bookrunners.

The Dallas-based master limited partnership, which provides wholesale fuel distribution services, plans to use the proceeds to fund the concurrent tender for its 5½% senior notes due 2026.

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