Sunoco L.P.'s Proposed $750 Million Senior Unsecured Notes Due 2033 Rated 'BB+' - S&P Global Ratings’ Credit Research

Sunoco L.P.'s Proposed $750 Million Senior Unsecured Notes Due 2033 Rated 'BB+'

Sunoco L.P.'s Proposed $750 Million Senior Unsecured Notes Due 2033 Rated 'BB+' - S&P Global Ratings’ Credit Research
Sunoco L.P.'s Proposed $750 Million Senior Unsecured Notes Due 2033 Rated 'BB+'
Published Mar 20, 2025
3 pages (1445 words) — Published Mar 20, 2025
Price US$ 150.00  |  Buy this Report Now

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Abstract:

DALLAS (S&P Global Ratings) March 20, 2025--S&P Global Ratings today assigned its 'BB+' issue-level rating and '3' recovery rating to Sunoco L.P.'s proposed $750 million senior unsecured notes due 2033. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a default. The company plans to use the proceeds from these notes to fully redeem its legacy NuStar $600 million senior notes due 2025 and repay a portion of its credit facility, thus we view the transaction as credit neutral. Sunoco L.P. does not have any secured debt. We cap our recovery rating on the company's unsecured debt at '3' because we generally cap our recovery ratings on the unsecured debt of

  
Brief Excerpt:

...March 20, 2025 DALLAS (S&P Global Ratings) March 20, 2025--S&P Global Ratings today assigned its '##+' issue-level rating and '3' recovery rating to Sunoco L.P.'s proposed $750 million senior unsecured notes due 2033. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a default. The company plans to use the proceeds from these notes to fully redeem its legacy NuStar $600 million senior notes due 2025 and repay a portion of its credit facility, thus we view the transaction as credit neutral. Sunoco L.P. does not have any secured debt. We cap our recovery rating on the company's unsecured debt at '3' because we generally cap our recovery ratings on the unsecured debt of companies we rate '##-'or higher to reflect the elevated risk they will issue incremental debt that impairs the recovery prospects for the unsecured debt. We assume the pari passu revolving credit facility is 85% drawn at default. ISSUE RATINGS--RECOVERY...

  
Report Type:

Ratings Action

Issuer
Sunoco LP
GICS
Oil & Gas Refining & Marketing (10102030)
Sector
Global Issuers
Country
United States
Region
United States
Format:
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Sunoco L.P.'s Proposed $750 Million Senior Unsecured Notes Due 2033 Rated 'BB+'" Mar 20, 2025. Alacra Store. May 13, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Sunoco-L-P-s-Proposed-750-Million-Senior-Unsecured-Notes-Due-2033-Rated-BB-3340463>
  
APA:
S&P Global Ratings’ Credit Research. (). Sunoco L.P.'s Proposed $750 Million Senior Unsecured Notes Due 2033 Rated 'BB+' Mar 20, 2025. New York, NY: Alacra Store. Retrieved May 13, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Sunoco-L-P-s-Proposed-750-Million-Senior-Unsecured-Notes-Due-2033-Rated-BB-3340463>
  
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