Sunoco LP Announces Pricing of Upsized Preferred Equity Offering

Core Viewpoint - Sunoco LP has announced a private offering of 1.5 million Series A Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units, raising gross proceeds of $1.5 billion to fund the acquisition of Parkland Corporation and related costs [1][2]. Group 1: Offering Details - The offering price for the Series A Preferred Units is set at $1,000 per unit, with the offering size increased from an initial 1 million units to 1.5 million units [1]. - The offering is expected to settle on September 18, 2025, pending customary closing conditions [1]. - The Series A Preferred Units will have a distribution rate of 7.875% per annum, paid semi-annually starting March 18, 2026 [4]. Group 2: Use of Proceeds - Net proceeds from the offering will be used to fund a portion of the cash consideration for the acquisition of Parkland Corporation, alongside previously announced senior notes offerings totaling $1.9 billion [2]. - Prior to the acquisition's effective date, proceeds will also be used to reduce outstanding borrowings under Sunoco's revolving credit facility [2]. Group 3: Redemption and Terms - If the Parkland Acquisition is not completed by May 5, 2026, the Series A Preferred Units will be subject to a special mandatory redemption at $1,000 per unit plus any accumulated distributions [3]. - After the First Reset Date, distributions will be based on the Five-Year U.S. Treasury Rate plus a spread of 4.230% per annum [4]. Group 4: Company Overview - Sunoco LP operates as an energy infrastructure and fuel distribution master limited partnership across over 40 U.S. states, Puerto Rico, Europe, and Mexico, with a network of approximately 14,000 miles of pipeline and over 100 terminals [9].