Energy Transfer Partners, Sunoco Announce $2.226 Bln Dropdown Transaction

(RTTNews) - Energy Transfer Partners, L.P. (ETP) and Sunoco LP (SUN) announced today the dropdown to Sunoco of the remaining 68.42 percent interest in Sunoco, LLC and 100 percent interest in the legacy Sunoco retail business for about $2.226 billion. The transaction will be effective as of January 1, 2016 and is expected to close in February 2016.

Sunoco will pay to ETP about $2.2 billion in cash, including the expected value of working capital, and also issue to ETP about 5.7 million Sunoco common units valued at about $194 million based on the five-day volume-weighted average price of Sunoco's common units as of November 13, 2015.

The transaction is also expected to be credit neutral to Sunoco and also be accretive to distributable cash flow and expected distributions per unit for Sunoco in 2016 and thereafter. The transaction now completes $5.7 billion of retail business dropdowns from ETP to Sunoco in just over a year.

It also completes Sunoco's transformation into one of the leading wholesale fuel and retail marketing platforms in the United States.