Energy Transfer Equity Invests $300 Million in Sunoco
LP through Preferred Equity Private Placement
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.
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
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