New Issue: Sunoco prices $800 million 8.5-year senior notes at par to yield 4½%

By Paul A. Harris

Portland, Ore., Oct. 5 – Sunoco LP and Sunoco Finance Corp. priced a restructured $800 million issue of 8.5-year senior notes (B1/BB-/BB) at par to yield 4½% in a Tuesday drive-by, according to market sources.

The yield printed at the tight end of yield talk in the 4 5/8% area and inside of initial guidance in the high 4% area.

In a structural change that came subsequent to the deal announcement, the company withdrew a proposed tranche of 10.5-year senior notes from the market, leaving the deal size unchanged at $800 million.

Citigroup Global Markets Inc. was the left bookrunner. Joint bookrunners were 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., Wells Fargo Securities LLC.

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

Issuers:	Sunoco LP and Sunoco Finance Corp.
Amount:	$800 million
Maturity:	April 30, 2030
Securities:	Senior notes
Left bookrunner:	Citigroup Global Markets Inc.
Joint bookrunners:	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., Wells Fargo Securities LLC
Coupon:	4½%
Price:	Par
Yield:	4½%
Spread:	319 bps
First call:	April 30, 2025 at 102.25
Trade date:	Oct. 5
Settlement date:	Oct. 20
Ratings:	Moody's: B1
	S&P: BB-
	Fitch: BB
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	4 5/8% area
Marketing:	Drive-by

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