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Sunoco LP Expands Revolving Credit Facility to $1.5 Billion

Will provide additional financing flexibility, liquidity to fund future growth

HOUSTON --Sunoco LP has announced that it has amended its existing revolving credit facility and expanded aggregate credit commitments from $1.25 billion to $1.5 billion.

Sunoco LP (CSP Daily News / Convenience Stores / Gas Stations)

The facility with a syndicate of banks matures in September 2019.

The expansion will provide the partnership with additional financing flexibility and liquidity to fund future growth capital expenditures, the company said.

And as previously reported, Sunoco LP recently completed the acquisition of a 31.58% equity interest in Sunoco LLC from ETP Retail Holdings, an affiliate of Energy Transfer Partners (ETP). The company valued the transaction at approximately $816 million. Sunoco LP paid $775 million in cash and issued to ETP 795,482 new SUN units valued at $40.8 million.

The acquisition was funded using proceeds from the previously announced issuance of senior notes that was also completed today. Sunoco LP issued $800 million of 6.375% senior notes due 2023 through a private offering. The notes were co-issued by Sunoco LP and Sunoco Finance Corp., a wholly owned subsidiary. Net proceeds totaled $789.2 million.

The company also used a small portion of the proceeds to repay outstanding borrowings under its senior secured revolving credit facility.

Sunoco LP is a master limited partnership (MLP) that primarily distributes motor fuel to convenience stores, independent dealers, commercial customers and distributors. SUN also operates more than 150 convenience stores and retail fuel sites. It conducts its business through wholly owned subsidiaries, as well as through its interest in Sunoco LLC, in partnership with an affiliate of its parent company, ETP. While primarily engaged in natural gas, natural gas liquids, crude oil and refined products transportation, ETP also operates a retail and fuel distribution business through its interest in Sunoco LLC, as well as wholly owned subsidiaries, Sunoco Inc. and Stripes LLC, which operate approximately 1,100 convenience stores and gas stations.

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