Sunoco L.P.'s Proposed Senior Unsecured Notes Rated 'BB' (Recovery Rating: '3'); Placed On CreditWatch Positive

NEW YORK (S&P Global Ratings) April 16, 2024--S&P Global Ratings today assigned its 'BB' issue-level ratings and '3' recovery rating to Sunoco L.P.'s proposed $1.5 billion senior unsecured notes issuance, consisting of notes due in 2029 and 2032. We also placed the issue-level ratings on CreditWatch with positive implications. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default. We expect the acquisition transaction of NuStar Energy L.P. will close in the first half of May. The company will use net proceeds from the transaction to refinance NuStar's outstanding revolving credit facility, the outstanding amount on the NuStar receivables financing facility, the subordinated notes, and all preferred units at

...April 16, 2024 NEW YORK (S&P Global Ratings) April 16, 2024--S&P Global Ratings today assigned its '##' issue-level ratings and '3' recovery rating to Sunoco L.P.'s proposed $1.5 billion senior unsecured notes issuance, consisting of notes due in 2029 and 2032. We also placed the issue-level ratings on CreditWatch with positive implications. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default. We expect the acquisition transaction of NuStar Energy L.P. will close in the first half of May. The company will use net proceeds from the transaction to refinance NuStar's outstanding revolving credit facility, the outstanding amount on the NuStar receivables financing facility, the subordinated notes, and all preferred units at the close of the acquisition transaction. Following the acquisition, Sunoco will assume the notes then outstanding at NuStar, and Sunoco will guarantee the assumed NuStar debt. The CreditWatch...

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