Sunoco LP priced a private offering of senior notes on February 26, 2026, upsizing the original $500 million offering for each maturity to $600 million. The new issuance consists of $600 million of 5.375% senior notes due 2031 and $600 million of 5.625% senior notes due 2034, bringing the total principal to $1.2 billion.
The partnership will use the net proceeds to redeem its NuStar Logistics, L.P. 6.000% senior notes due 2026 and its own 6.000% senior notes due 2027. Any remaining funds will be applied to general partnership purposes, including potential repayment of borrowings under its revolving credit facility. The offering is expected to settle on March 9, 2026, subject to customary closing conditions.
This refinancing move is part of Sunoco’s strategy to replace higher‑cost debt with lower‑coupon notes, thereby reducing interest expense and extending the maturity profile. The transaction also supports the ongoing integration of the $9.1 billion Parkland acquisition, which closed on October 31, 2025, and the expansion of Sunoco’s midstream assets, both of which are key drivers of future growth.
Sunoco’s recent financial performance underscores the timing of the refinancing. In Q4 2025 the partnership reported adjusted EBITDA of $706 million, up from $141 million in Q4 2024, and a full‑year 2025 adjusted EBITDA of $2.12 billion, a 36% increase YoY. Management has guided for 2026 adjusted EBITDA of $3.1–$3.3 billion, supported by $125 million of the targeted $250 million annual synergies from Parkland in 2026.
Management emphasized the progress of the integration and confidence in future performance. Scott Grischow, Sunoco’s senior vice president of finance, said on the Q4 2025 earnings call, "The fourth quarter marked the end of a transformative and record‑setting year for Sunoco. We closed the Parkland transaction on Oct. 31, and our team is now fully engaged in integration efforts that are progressing well. The partnership delivered record adjusted EBITDA of $706 million in the fourth quarter, excluding approximately $60 million of one‑time transaction expenses." President and CEO Joe Kim added that the company is focused on growing its midstream, fuel distribution, and geographic footprints.
Sunoco has a history of strategic debt management, having completed a $750 million senior notes offering due 2033 in March 2025 and a $1 billion senior notes offering in February 2026. The current $1.2 billion offering continues this pattern of optimizing the capital structure. The partnership’s revolving credit facility remains a key liquidity source, with $338 million outstanding and $2.1 billion of remaining capacity as of February 23, 2026.
By replacing 6.000% notes with 5.375% and 5.625% notes, Sunoco reduces its weighted‑average coupon by 0.375–0.625 percentage points, translating into lower annual interest expense. The extended maturities to 2031 and 2034 also improve debt‑to‑EBITDA ratios, enhancing credit metrics and providing a buffer for future capital‑intensive projects. The refinancing, coupled with the integration of Parkland and midstream expansion, positions Sunoco to capture synergies, improve operational leverage, and support a higher growth trajectory for 2026 and beyond.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.