Sunoco LP is acquiring NuStar Energy LP, an independent liquids terminal and pipeline operator, for approximately $7.3 billion in an all-equity transaction, the companies announced Jan. 22.

As per the agreement, NuStar common unitholders will receive 0.400 Sunoco common units for each NuStar common unit. 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 transaction is expected to close in the second quarter of 2024 following the satisfaction of customary closing conditions. By the third year following close, Sunoco expects at least 10% accretion to distributable cash flow per LP unit, according to the press release.

Truist Securities served as the exclusive financial advisor to Sunoco. Truist and Bank of America provided committed financing. Weil, Gotshal & Manges LLP and Vinson & Elkins LLP acted as Sunoco’s legal advisors.

Barclays served as the exclusive financial advisor to NuStar. Wachtell, Lipton, Rosen & Katz and Sidley Austin LLP acted as NuStar’s legal advisors.


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