Sunoco to redeem preferred units held by Energy Transfer for $312M

|About: Energy Transfer LP (ET)|By:, SA News Editor

Sunoco (SUN -1.8%) turns lower after climbing to a 52-week high, as the refinery and petroleum marketing company announces a deal to re-acquire all $300M of its outstanding Series A preferred equity held by Energy Transfer Equity (ETE -0.1%).

SUN also will pay a 1% redemption premium for the securities plus accrued interest, boosting its total outlay to $316.2M.

ETE says it plans to use net proceeds from the deal to repay debt owed under its revolving credit facility.

Subscribe for full text news in your inbox