Sunoco LP announced the closing of the strategic divestiture of the vast majority of its company operated convenience stores to 7-Eleven, Inc. This strategic divestiture is a major step in transforming Sunoco LP into a more stable income master limited partnership focused on fuel distribution and logistics.

The transaction with 7-Eleven, Inc. includes a 15-year take-or-pay fuel supply agreement under which Sunoco will supply approximately 2.0 billion gallons of fuel annually with an additional 0.5 billion gallons of committed growth in the future periods.

The gross proceeds of approximately $3.2 billion from the transaction will be used to achieve targeted leverage and coverage goals.

Sunoco’s strategic conversion of 207 West Texas retail sites to a commission agent model remains on schedule with a conversion date expected to occur late in the first quarter of 2018.

Sunoco also announced the closing of its previously announced private offering of $2.2 billion of senior notes, comprised of $1 billion in aggregate principal amount of 4.875% senior notes due 2023, $800 million in aggregate principal amount of 5.500% senior notes due 2026 and $400 million in aggregate principal amount of 5.875% senior notes due 2028.