© Reuters. Sunoco (SUN) to acquire NuStar Energy (NS) in all-stock deal worth $7.3bn
NuStar Energy L.P. (NS) shares jumped over 21% premarket Monday after it was announced the company has entered an agreement to be acquired by Sunoco LP (SUN) in an all-equity deal valued at $7.3 billion, including assumed debt.
The deal will see NuStar common shareholders receive 0.400 Sunoco shares for each NuStar common unit, implying a 24% premium based on the 30-day VWAPs of both NuStar and Sunoco as of January 19, 2024, as well as a 31% premium to the last close.
Both boards have approved the deal, pointing to at least $150 million of run-rate synergies by the third year following close. The deal is expected to close in the second quarter of 2024.
Sunoco said it 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.
Prior to the deal closing, NuStar will make a cash distribution of $0.212 per share to its common shareholders.
