Sunoco Logistics Partners L.P. (NYSE:SXL), a pipeline master limited partnership, has increased an already-announced offering of common units from 2 million to 2.2 million, and priced the offering at $50.60/common unit. That’s a discount of about 4% to the stock’s closing price yesterday.
Joint book-runners are Citi, Barclays, and UBS, and they have been offered an option to purchase 330,000 common units. The offering was made under the company’s existing shelf registration, and Sunoco Logistics plans to use the cash to “reduce the indebtedness outstanding under the $400 million revolving credit facility of its wholly-owned subsidiary, Sunoco Logistics Partners Operations L.P., and for general partner purposes
The company’s common units are down more than 6% in pre-open trading this morning. This sort of dilution does not go down well with investors’ morning coffee.
Paul Ausick
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.