Company Website:
http://www.energytransfer.com
DALLAS -- (Business Wire)
Sunoco LP (NYSE: SUN) (“SUN”) and Energy Transfer Equity, L.P. (NYSE:
ETE) (“ETE”) today announced the completion of a private placement of
$300 million in SUN preferred equity to ETE.
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Distributions on the new SUN Series A Perpetual Preferred Units
(“Preferred Units”) issued to ETE are cumulative and will be payable
quarterly from and including the date of original issue. The initial
distribution rate of 10.00% per annum of the stated liquidation
preference of $25.00 will change to an annual floating rate equal to
three-month LIBOR plus a spread of 8.0% on and after the five-year
anniversary of the issuance of the Preferred Units. The Preferred Units
are redeemable at SUN’s option for five years after the issue date at
101% of the liquidation preference plus any accrued quarterly
distributions. Starting five years following the issue date, the
Preferred Units are redeemable at SUN’s option at the liquidation
preference plus any accrued quarterly distributions. The Preferred Units
represent a perpetual equity interest in SUN and rank junior to all of
SUN’s existing and future indebtedness, including SUN’s revolving credit
facility and term loan.
The purchase of SUN Preferred Units by ETE has been approved by the
board of directors of both Partnerships and their respective conflicts
or special committees.
Proceeds from the Preferred Unit issuance will be used by SUN to repay
borrowings under its revolving credit facility.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that operates
1,345 convenience stores and retail fuel sites and distributes motor
fuel to 7,845 convenience stores, independent dealers, commercial
customers and distributors located in 30 states. Our parent -- Energy
Transfer Equity, L.P. (NYSE: ETE) -- owns SUN's general partner and
incentive distribution rights.
About Energy Transfer Equity
Energy Transfer Equity, L.P. (NYSE: ETE) is a master limited partnership
that owns the general partner and 100% of the incentive distribution
rights (IDRs) of Energy Transfer Partners, L.P. (NYSE: ETP) and Sunoco
LP (NYSE: SUN). ETE also owns approximately 18.4 million ETP common
units and approximately 81.0 million ETP Class H Units, which track 90%
of the underlying economics of the general partner interest and IDRs
of Sunoco Logistics Partners L.P. (NYSE: SXL). On a consolidated basis,
ETE’s family of companies owns and operates approximately 71,000 miles
of natural gas, natural gas liquids, refined products, and crude oil
pipelines. For more information, visit the Energy Transfer Equity,
L.P. website at www.energytransfer.com.
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Contacts:
Sunoco LP
Scott Grischow,
214-840-5660
Senior Director – Investor Relations and Treasury
scott.grischow@sunoco.com
or
Patrick
Graham, 214-840-5678
Senior Analyst – Investor Relations and Finance
patrick.graham@sunoco.com
or
Energy
Transfer Equity
Investor Relations:
Helen Ryoo,
Lyndsay Hannah, Brent Ratliff, 214-981-0795
investorrelations@energytransfer.com
or
Media
Relations:
Vicki Granado, 214-981-0761
vicki.granado@energytransfer.com
Source: Energy Transfer Equity, L.P. and Sunoco LP
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