Deals
Sunoco's $3.3 Billion 7-Eleven Deal Faces Lender Snag
- Bondholders form ad hoc group to oppose bond indenture change
- Holders seeking better terms to allow for sale to go through
A Sunoco Inc. gas station in Rockbridge, Ohio, on Dec. 17, 2014.
Photographer: Ty Wright/BloombergThis article is for subscribers only.
Sunoco LP’s bondholders are creating an obstacle for a $3.3 billion deal struck by the company to sell more than 1,100 gas stations and convenience stores to 7-Eleven Inc.
A group of creditors has told the company it intends to oppose Sunoco’s attempt to change the terms of the credit pact governing about $1.6 billion of bonds -- a step that Sunoco has said is needed to complete the sale, according to a viewed by Bloomberg. The debtholders are demanding more money and better protections to agree to the changes in the bond indentures, according to a person with knowledge of the matter, who asked not to be identified as the information isn’t public.