DALLAS and HOUSTON, March 31,
2016 /PRNewswire/ -- Energy Transfer Partners, L.P. (NYSE:
ETP) and Sunoco LP (NYSE: SUN) announced today that they have
completed the previously announced dropdown to SUN of the remaining
68.42% interest in Sunoco, LLC and 100% interest in Sunoco Retail
LLC, which owns the legacy Sunoco convenience store business, for
approximately $2.226 billion.
The transaction has an effective date of January 1, 2016 and is expected to be accretive
to distributable cash flow and expected distributions per unit for
SUN in 2016 and thereafter.
SUN paid ETP approximately $2.2
billion in cash including the expected value of working
capital and issued to ETP 5,710,922 million SUN common units valued
at approximately $194 million based
on the five-day volume-weighted average price of SUN's common units
as of November 13, 2015. In
connection with the closing of the acquisition, SUN entered into a
$2.035 billion senior secured term
loan facility to fund a portion of the cash consideration for the
acquisition, with the remaining portion funded with borrowings
under SUN's revolving credit facility.
This final dropdown completes a total of $5.7 billion of dropdowns from ETP to SUN since
the fourth quarter of 2014, transforming into one of the leading
wholesale fuel and retail marketing platforms in the United States, with tremendous geographic
scale and a unique diversity of business drivers.
Simultaneously with the closing of the acquisition, SUN
completed its previously announced sale of 2,263,518 SUN common
units to Energy Transfer Equity, L.P. (NYSE: ETE) and received
$64.5 million in proceeds which were
used to repay borrowings under SUN's revolving credit facility.
Sunoco LP (NYSE: SUN) is a master limited partnership
that operates approximately 1,340 convenience stores and retail
fuel sites and distributes motor fuel to convenience stores,
independent dealers, commercial customers and distributors located
in 30 states at approximately 6,800 sites. Our parent -- Energy
Transfer Equity, L.P. (NYSE: ETE) -- owns SUN's general partner and
incentive distribution rights. For more information, visit the
Sunoco LP website at www.SunocoLP.com
Energy Transfer Partners, L.P. (NSYE: ETP) is a
master limited partnership owning and operating one of the largest
and most diversified portfolios of energy assets in the United States. ETP's subsidiaries include
Panhandle Eastern Pipe Line Company, LP (the successor of Southern
Union Company) and Lone Star NGL LLC, which owns and operates
natural gas liquids storage, fractionation and transportation
assets. In total, ETP currently owns and operates more than 62,500
miles of natural gas and natural gas liquids pipelines. ETP also
owns the general partner, 100% of the incentive distribution
rights, and approximately 67.1 million common units in Sunoco
Logistics Partners L.P. (NYSE: SXL), which operates a
geographically diverse portfolio of crude oil and refined products
pipelines, terminalling and crude oil acquisition and marketing
assets. ETP's general partner is owned by Energy Transfer
Equity, L.P. For more information, visit the Energy Transfer
Partners, L.P. web site at www.energytransfer.com.
Energy Transfer Equity, L.P. (NYSE: ETE) is a master
limited partnership that owns the general partner and 100% of the
incentive distribution rights of Energy Transfer Partners, L.P. and
Sunoco LP and approximately 2.6 million ETP Common Units,
approximately 81.0 million ETP Class H Units, which track 90% of
the underlying economics of the general partner interest and the
IDRs of Sunoco Logistics Partners L.P. (NYSE: SXL), and 100 ETP
Class I Units. On a consolidated basis, ETE's family of companies
owns and operates approximately 71,000 miles of natural gas,
natural gas liquids, refined products, and crude oil pipelines. For
more information, visit Energy Transfer Equity, L.P.'s web
site at www.energytransfer.com.
Forward-Looking Statements
This news release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. Such forward-looking statements are subject
to a variety of known and unknown risks, uncertainties, and other
factors that are difficult to predict and many of which are beyond
management's control. An extensive list of factors that can affect
future results are discussed in the Partnership's Annual Report on
Form 10-K and other documents filed from time to time with the
Securities and Exchange Commission. The Partnership undertakes no
obligation to update or revise any forward-looking statement to
reflect new information or events.
The information contained in this news release is available on
our website at www.SunocoLP.com
Contacts
Sunoco LP
Scott
Grischow, Director – Investor Relations and Treasury
(361) 884-2463, scott.grischow@sunoco.com
Dennard-Lascar Associates
Anne Pearson
(210) 408-6321, apearson@dennardlascar.com
Energy Transfer Partners, L.P.
Brent Ratliff, Vice President, Investor
Relations
(214) 981-0795, brent.ratliff@energytransfer.com
Lyndsay Hannah, Director of
Finance and Investor Relations
(214) 981-0795, lyndsay.hannah@energytransfer.com
Granado Communications
Vicki Granado
(214) 599-8785, vicki@granadopr.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/energy-transfer-partners-and-sunoco-lp-complete-the-dropdown-of-remaining-wholesale-fuel-and-retail-marketing-assets-300244364.html
SOURCE Energy Transfer Equity, L.P.; Sunoco LP; Energy Transfer
Partners, L.P.