Sunoco LP announces $1.7 billion private offering of senior notes

Sunoco LP (NYSE: SUN) announced a private offering of $1.7 billion in senior notes, comprising $850 million in notes due 2031 and $850 million in notes due 2034.

The company plans to use the net proceeds to fund part of its acquisition of Parkland Corporation and related transaction costs. Prior to closing the Parkland acquisition, Sunoco will use the funds to reduce borrowings under its revolving credit facility.

The note offering is not contingent on completing the Parkland acquisition or a concurrent preferred equity offering. If the Parkland acquisition is not completed by May 5, 2026, or if the arrangement agreement is terminated before that date, the notes will be subject to mandatory redemption at 100% of the initial issue price plus accrued interest.

Sunoco entered into the arrangement agreement with Parkland on May 4, 2025. The notes offering will target qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S, as the securities have not been registered under the Securities Act of 1933.

Sunoco operates energy infrastructure and fuel distribution across more than 40 U.S. states, Puerto Rico, Europe, and Mexico, with approximately 14,000 miles of pipeline and over 100 terminals. Energy Transfer LP (NYSE: ET) owns the company's general partner.

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