On Tuesday, Shares of Energy Transfer Partners LP (NYSE:ETP), lost -0.60% to $41.12.
Energy Transfer Partners, and Sunoco LP (SUN), declared the dropdown to SUN of the remaining 68.42% interest in Sunoco, LLC and 100% interest in the legacy Sunoco retail business for about $2.226 billion. The transaction will be effective as of January 1, 2016 and is predictable to close in February 2016.
SUN will pay to ETP about $2.2 billion in cash (counting the predictable value of working capital) and will issue to ETP about 5.7 million SUN common units valued at about $194 million based on the five-day volume-weighted average price of SUN’s common units as of November 13, 2015. Pro forma for the dropdown transaction and related equity private placement, ETP will remain the largest unitholder of SUN with an approximate 46% LP interest , reflecting ETP’s continued confidence in SUN’s business and future growth prospects.
The timing of this dropdown transaction is driven by the view that accelerating the dropdown of the remaining retail marketing and wholesale fuel assets to SUN was in the best interest of all parties. SUN anticipates that, following the completion of this transaction, it will not need to raise any additional equity financing in 2016. The transaction is also predictable to be credit neutral to SUN and to be accretive to distributable cash flow and predictable distributions per unit for SUN in 2016 and thereafter.
Energy Transfer Partners, L.P. engages in the natural gas midstream, and intrastate transportation and storage businesses in the United States. The company’s Intrastate Transportation and Storage segment transports natural gas from various natural gas producing areas, in addition to through its ET fuel system and HPL system.
Finally, Shares of PBF Energy Inc (NYSE:PBF), ended its last trade with 4.92% gain, and closed at $36.07.
PBF Energy, declared that its indirect partner, PBF Holding Company LLC (“PBF Holding”), priced $500 million in aggregate principal amount of 7% senior secured notes due 2023, in a private offering. The offering is predictable to close on November 24, 2015, subject to customary closing conditions.
PBF Holding intends to use the net proceeds from the offering for general corporate purposes, counting to fund a portion of the purchase price for the pending acquisition of the Torrance refinery and related logistics assets. The notes will be co-issued by PBF Finance Corporation, a wholly owned partner of PBF Holding.
The notes to be offered and sold have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws, and unless so registered, the notes may not be offered or sold in the United States except following an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The notes purchased by the initial purchasers will be offered and sold only to qualified institutional buyers following Rule 144A under the Securities Act and to persons outside the United States following Regulation S under the Securities Act.
PBF Energy Inc., together with its auxiliaries, engages in the refining and supply of petroleum products. It produces gasoline, ultra-low-sulfur diesel, heating oil, jet fuel, lubricants, petrochemicals, and asphalt, in addition to unbranded transportation fuels, heating oil, petrochemical feedstocks, and other petroleum products.