Sunoco Logistics Ups Offering (SXL)

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By Douglas A. McIntyre Updated Published

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

Contact [email protected] for any questions or corrections.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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