Sunoco to Acquire NuStar Energy in $7.3 Billion All-Equity Deal

Sunoco LP and NuStar Energy L.P. have entered into a definitive agreement for Sunoco to acquire NuStar in a $7.3 billion all-equity deal, including assumed debt. As per the deal, NuStar common unitholders will receive 0.400 Sunoco common units for each NuStar common unit, representing a 24% premium based on the 30-day VWAP's of both companies as of January 19, 2024.

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, expected to close in the second quarter of 2024, has received unanimous approval from both companies' boards of directors and is subject to meeting closing conditions, including approval by NuStar's unitholders and regulatory approvals.

The acquisition is anticipated to increase stability, strengthen financial foundation, enhance growth, and provide positive financial outlook. Prior to closing, NuStar will make a cash distribution of $0.212 per common unit to its common unitholders.