Sunoco LP
SUN,
and NuStar Energy LP
NS,
said Monday they have agreed to combine in an all-stock deal valued at about $7.3 billion, including debt. Under the terms of the deal, NuStar common unitholders will receive 0.400 Sunoco shares for each unit owned, equal to a 24% premium based on the 30-day volume-weighted average prices of NuStar and Sunoco as of Jan. 19. Sunoco has secured a $1.6 billion 364-day bridge term loan to refinance NuStar’s Series A, B and C preferred units, subordinated notes, revolving credit facility, and receivables financing agreement, the companies said in a joint statement. Sunoco is a master limited partnership with operations that include distributing motor fuel to about 10,000 convenience stores and others in 40 U.S. states. NuStar is an independent liquids terminal and pipeline operator. Its stock soared 22% premarket on the news.
