PHILADELPHIA, Nov. 2 /PRNewswire-FirstCall/ -- Sunoco, Inc. (NYSE: SUN)
announced today that the Pennsylvania Economic Development Financing Authority
has issued on Sunoco's behalf $103 million of Wastewater Treatment Revenue
Refunding Bonds (Sunoco, Inc. (R&M) Project) due October 1, 2034. The bonds
were offered as $51.5 million Series 2004A bonds underwritten by Banc of
America Securities LLC and as $51.5 million Series 2004B bonds underwritten by
J.P. Morgan Securities Inc. In the opinion of counsel, interest on the bonds
is excluded from gross income for federal income tax purposes under existing
laws as presently enacted and construed per the Official Statements published
October 25, 2004. The bonds will be guaranteed by Sunoco, Inc. which is rated
Baa2/P-2 by Moody's and BBB/A-2 by S&P, with a stable outlook from both
agencies.
(Logo: http://www.newscom.com/cgi-bin/prnh/19981105/PHTH006 )
The bonds will initially accrue interest at weekly rate periods as
determined by the Remarketing Agents, Banc of America Securities LLC and J.P.
Morgan Securities Inc. Interest will be payable the first business day of
each month commencing December 1, 2004. The initial weekly rate is 2.01%.
The rate of interest and interest payment dates may be changed from time to
time and from Flexible, Daily, Weekly or Term rates at the direction of the
Company.
Proceeds of the offering will be used for redemption, including the 2%
call premium and principal and refinancing expenses, on December 1, 2004 of
the $100 million Pennsylvania Economic Development Financing Authority 7.6%
Wastewater Treatment Revenue Bonds (Sun Company, Inc. (R&M) Project) Series
1994A.
"This refinancing is consistent with Sunoco's ongoing actions to lower the
cost of our debt," said Thomas W. Hofmann, Sunoco Senior Vice President and
Chief Financial Officer. "In the third quarter of 2004, Sunoco redeemed
approximately $350 million of par value debt and issued $250 million 4-7/8%
ten year notes. Together, these actions are expected to reduce interest
expense by $20 million in 2005 while extending the average life of our debt."
Sunoco, Inc., headquartered in Philadelphia, PA, is a leading manufacturer
and marketer of petroleum and petrochemical products. With 890,000 barrels
per day of refining capacity, over 4,800 retail sites selling gasoline and
convenience items, over 4,500 miles of crude oil and refined product owned and
operated pipelines and 37 product terminals, Sunoco is one of the largest
independent refiner-marketers in the United States. Sunoco is a significant
manufacturer of petrochemicals with annual sales of approximately five billion
pounds, largely chemical intermediates used to make fibers, plastics, film and
resins. Utilizing a unique, patented technology, Sunoco also manufactures
two million tons annually of high-quality metallurgical-grade coke for use in
the steel industry. For additional information visit Sunoco's Web site at
http://www.SunocoInc.com.
Those statements made in this release that are not historical facts are
forward-looking statements intended to be covered by the safe harbor
provisions of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Although Sunoco believes that the
assumptions underlying these statements are reasonable, investors are
cautioned that such forward-looking statements are inherently uncertain and
necessarily involve risks that may affect Sunoco's business prospects and
performance causing actual results to differ from those discussed in the
foregoing release. Such risks and uncertainties include, by way of example
and not of limitation: general business and economic conditions; competitive
products and pricing; changes in refining, chemical and other product margins;
variation in petroleum-based commodity prices and availability of crude oil
supply or transportation; fluctuations in supply of feedstocks and demand for
products manufactured; changes in operating conditions and costs; changes in
the expected level of environmental capital, operating or remediation
expenditures; potential equipment malfunction; potential labor relations
problems; the legislative and regulatory environment; plant
construction/repair delays; nonperformance by major customers, suppliers or
other business partners; and political and economic conditions, including the
impact of potential terrorist acts and international hostilities. These and
other applicable risks and uncertainties have been described more fully in
Sunoco's Form 10-Q filed with the Securities and Exchange Commission on
August 5, 2004 and in other periodic reports filed with the Securities and
Exchange Commission. Sunoco undertakes no obligation to update any forward-
looking statements in this release, whether as a result of new information or
future events.
SOURCE Sunoco, Inc.
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Related links:
http://www.SunocoInc.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19981105/PHTH006
PRN Photo Desk, photodesk@prnewswire.com
Company News On-Call:
http://www.prnewswire.com/comp/829144.html
CONTACT:
Jerry Davis (media), +1-215-977-6298 or Terry
Delaney (investors), +1-215-977-6106, both of Sunoco, Inc.
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