HOUSTON, TEXAS (By Isaac Silvestre, Energy Analytics Institute, 4.Sep.2025, Words: 240) — Sunoco LP announced the pricing of a private offering of 1.5 million of its 7.875% series A fixed-rate reset cumulative redeemable perpetual preferred units at an offering price of $1,000 per unit.
Sunoco will receive gross proceeds of $1.5bn from the sale of the units before deducting the initial purchasers’ discount and other estimated offering expenses.
This offering was upsized from an initial offering size of 1 million units, Sunoco said on 4 Sep. 2025 in an official statement. This offering is expected to settle on 18 Sep. 2025, subject to the satisfaction of customary closing conditions.
Sunoco intends to use the net proceeds from this offering for the following:
(i) on the closing date of Sunoco’s acquisition of all of the issued and outstanding common shares of Parkland Corporation, together with the net proceeds of the previously announced private offering of its senior notes due 2031 in an aggregate principal amount of $1bn and senior notes due 2034 in an aggregate principal amount of $900mn, to fund a portion of the cash consideration for the Parkland acquisition and related transaction costs, with the remaining proceeds, if any, to be used for general corporate purposes, and,
(ii) prior to the effective date, to temporarily reduce the borrowings outstanding under Sunoco’s revolving credit facility and pay interest and fees in connection therewith.
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By Isaac Silvestre reporting from Houston. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
