Mergers & Acquisitions

Sunoco LP Dropdown Complete

Energy Transfer Partners transfers remaining wholesale fuel, retail marketing assets

DALLAS & HOUSTON --Energy Transfer Partners LP (ETP) and Sunoco LP have completed the dropdown to Sunoco LP of the remaining 68.42% interest in Sunoco LLC and 100% interest in Sunoco Retail LLC, which owns the legacy Sunoco convenience store business, for approximately $2.226 billion.

Sunoco LP

In connection with the closing of the acquisition, Sunoco LP entered into a $2.035 billion senior secured term loan facility to fund a portion of the cash consideration for the acquisition, with the remaining portion funded with borrowings under Sunoco LP’s revolving credit facility.

As reported in a McLane/CSP Daily News Flash, this final dropdown, effective as of Jan. 1, 2016, completes a total of $5.7 billion of dropdowns from ETP to Sunoco LP since fourth-quarter 2014, transforming into one of the leading wholesale fuel and retail marketing platforms in the United States, with tremendous geographic scale and a unique diversity of business drivers.

Simultaneously with the closing of the acquisition, Sunoco LP completed its previously announced sale of 2,263,518 SUN common units to Energy Transfer Equity LP (ETE), its parent, and received $64.5 million in proceeds it used to repay borrowings under Sunoco LP’s revolving credit facility.

Houston-based Sunoco LP is a master limited partnership (MLP) that operates approximately 900 convenience stores--including 725 Stripes locations and the 175 Mid-Atlantic Convenience Stores (MACS), Tigermarket and Aloha locations--and distributes motor fuel to convenience stores, independent dealers, commercial customers and distributors located in more than 30 states at approximately 6,800 sites, both directly and through its 31.58% interest in Sunoco LLC, owned in partnership with ETP. Energy Transfer Equity (ETE) owns Sunoco LP’s general partner and incentive distribution rights. ETP owns a 36.4% limited partner interest.

Dallas-based ETP is an MLP owning and operating one of the largest and most diversified portfolios of energy assets in the United States. It owns the general partner, 100% of the incentive distribution rights and approximately 67.1 million common units in Sunoco Logistics Partners LP, which operates a geographically diverse portfolio of crude oil and refined products pipelines, terminalling and crude oil acquisition and marketing assets.

ETE is an MLP that owns the general partner and 100% of the incentive distribution rights of ETP and Sunoco LP.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

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