Energy Transfer Partners Speeds Up Completion of Dropdowns to Sunoco
November 16 2015 - 8:20AM
Dow Jones News
Energy Transfer Partners LP said it would sell its remaining
Sunoco-related retail and wholesale holdings in a $2.23 billion
drop-down deal to Sunoco LP, another company in the Energy Transfer
family.
The move completes a total of $5.7 billion of so-called
drop-down transactions. The mostly cash deal will be effective Jan.
1 and is expected to close in February, accelerated timing from
previous plans, the companies said. Sunoco doesn't expect to need
to raise any additional equity financing in 2016 following the
deal.
Energy Transfer Partners will remain the largest holder of
Sunoco, with an about 46% interest.
Private investors are putting up $685.5 million to buy Sunoco
shares at about $31 each—they closed Friday at $33.13--while Energy
Transfer Equity LP is buying $64.5 million worth. With the
dropdowns completed, Sunoco "will be able to focus on a broad range
of opportunities to grow via third-party acquisitions and capital
projects," the company said in a statement.
Shares of Sunoco and Energy Transfer Partners were inactive
premarket.
In July, Energy Transfer Partners announced it would sell its
convenience-stores business to Sunoco, in a drop-down deal valued
at $1.94 billion.
Write to Anne Steele at Anne.Steele@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 16, 2015 09:05 ET (14:05 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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