Sunoco LP announced a private offering of $1 billion in senior notes, split evenly between $500 million of notes due 2031 and $500 million of notes due 2034.
The proceeds will be used to redeem in full NuStar Logistics, L.P.’s 6.000% senior notes due 2026 and Sunoco’s own 6.000% senior notes due 2027, with redemption dates scheduled for March 9 2026 and March 30 2026, respectively. Any remaining funds may be applied to repay borrowings under the company’s revolving credit facility.
The refinancing is intended to reduce interest expense and extend Sunoco’s debt maturity profile, thereby supporting its capital allocation strategy and future growth initiatives. Management highlighted the company’s strong liquidity position and a target of at least 5 % annual growth in 2026.
The transaction follows Sunoco’s recent acquisition of NuStar Logistics and the October 31 2025 acquisition of Parkland, and aligns with a pattern of using debt to fund strategic acquisitions. Long‑term debt stood at $13.4 billion as of December 31 2025, and the new notes will shift the debt profile toward longer maturities.
Pro‑forma financial statements indicate a modest improvement in liquidity and a more favorable debt maturity profile, positioning Sunoco to pursue future growth while managing leverage.
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