ETE invests $300M in Sunoco LP through preferred equity

Sunoco LP (SUN) and Energy Transfer Equity LP (ETE) have completed a private placement of $300 million in SUN preferred equity to ETE.

Distributions on the new SUN Series A Perpetual Preferred Units issued to ETE are cumulative and will be payable quarterly from and including the date of original issue. The Preferred Units are redeemable at SUN’s option for five years after the issue date at 101 percent 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 SUN’s existing and future indebtedness, including SUN’s revolving credit facility and term loan.

For more information, visit www. sunoco.com or www.energytransfer.com.