Boston, MA 09/18/2014 (wallstreetpr) – Operator of logistics business, Sunoco Logistics Partners L.P. (NYSE:SXL), disclosed the pricing of its public offering of common units, which was 6.6% lower than the yearly high price. The company intends to use the proceeds to payback part of its outstanding borrowing.
Pricing Public Issue
The company has priced its 7.7 million of public issue of its common units at the rate of $48.46 a unit, its statement revealed. This meant that the price was nearly 1% less than the closing price of $48.08 recorded on September 17. However, based on the 52-week high price of $51.45, the pricing represented a discount of 6.6%.
Sunoco Logistics Partners L.P. (NYSE:SXL) said that the underwriters have also been given a choice to buy a maximum of 1.155 million addition common units. It said that the issue was made following a shelf registration statement on Form S-3 filed with the regulator, Securities and Exchange Commission, earlier.
The company indicated that the net proceeds from the public issue would be utilized to repay its outstanding debt under its revolving credit facility of $1.5 billion besides general partnership businesses.
The joint book-running managers to the public issue were, Citigroup Inc (NYSE:C), Barclays, Deutsche Bank Securities, Credit Suisse, Goldman Sachs Group Inc (NYSE:GS), Morgan Stanley (NYSE:MS), J.P. Morgan, Wells Fargo Securities, and UBS Investment Bank. Stifel and Baird were the co-managers to the public issue.
Earlier, Sunoco Logistics Partners L.P. (NYSE:SXL) reported net income of $156 million for the June quarter, up 9.1% from $143 million while earnings per unit slackened to 53 cents from 54 cents in the year-ago quarter due to higher outstanding units. Its sales and other operating revenue grew 11.8% to $4.82 billion from $4.31 billion in the previous year quarter.
Expectations For 3Q
On average, Wall Street analysts, expect Sunoco Logistics Partners L.P. (NYSE:SXL) to earn 36 cents a unit for the third quarter on revenues of $4.85 billion. This meant that analysts’ are projecting profit per unit growth of 56.5% on revenue uptick of 7.1% over the year-ago period.