Deal Description: Sunoco LP, a master limited partnership (NYSE: SUN) (“Sunoco”), announced today that a group of private investors (the “Institutional Investors”) have fully committed to purchase an aggregate of $685.5 million of common units representing limited partner interests in Sunoco in an unregistered private placement. Sunoco also announced that Energy Transfer Equity, L.P. (NYSE: ETE) (“ETE”), a master limited partnership which owns Sunoco’s general partner, has fully committed to purchase an aggregate of $64.5 million of common units representing limited partner interests in Sunoco in an unregistered private placement.
Energy Transfer Partners, L.P., a master limited partnership (NYSE: ETP), and Sunoco announced today the dropdown to Sunoco of the remaining 68.42% interest in Sunoco, LLC and 100% interest in the legacy Sunoco retail business for an aggregate of approximately $2.226 billion. The dropdown transaction will be effective as of January 1, 2016 and is expected to close in February 2016, subject to customary closing conditions.
The private placement is expected to close and fund in early December 2015, with the exception of ETE’s portion, which will fund at the closing of the dropdown transaction. The proceeds from the private placement will be used to repay borrowings under the revolving credit facility and for general partnership purposes. Baker Botts represented the Institutional Investors in the private placement.
Baker Botts Lawyers/Office Involved: Josh Davidson (Partner, Houston); Hillary Holmes (Partner, Houston); Suparna Salil (Associate, Houston); Monica White (Associate, Houston); Chuck Campbell (Special Counsel, Houston)
For more information, please see Sunoco’s news release by clicking here.
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