A F SUNOCO LOGO SUNOCO LOGO
Sunoco logo. (PRNewsFoto/SUNOCO, INC.)[TC JU TK]
PHILADELPHIA, PA UNITED STATES
PHILADELPHIA, Sept. 15 /PRNewswire-FirstCall/ -- Sunoco, Inc. (NYSE: SUN)
today announced that it, and its wholly owned Aristech Chemical Corporation
subsidiary, have commenced cash tender offers for $350 million aggregate
principal amount of specified series of their outstanding debt.
(Logo: http://www.newscom.com/cgi-bin/prnh/19981105/PHTH006 )
Sunoco is offering to purchase any and all of the outstanding principal
amount of its 9-3/8% Sinking Fund Debentures due 2016, redeemable in 2006, and
Aristech is offering to purchase any and all of its 6-7/8% Notes due 2006.
Both of these offers are scheduled to expire at 5:00 p.m. EDT, on
September 22, 2004, the Scheduled Expiration Date, unless extended.
The purchase price for each $1,000 principal amount of notes tendered and
accepted for payment pursuant to the tender offers will be determined at
2:00 p.m. EDT on September 22, 2004 in the manner described in the Offer to
Purchase dated September 15, 2004. The purchase price will be announced by
news release promptly after its determination. The consideration for each
issue will be calculated by taking the applicable fixed spread over the bid
side yield to maturity of a reference security. For the 9-3/8% Sinking Fund
Debentures, the reference security will be the 2-1/2% U.S. Treasury Notes due
May 31, 2006. For the 6-7/8% Notes, the reference security will be the 3-1/2%
U.S. Treasury Notes due November 15, 2006. In each case, the fixed spread
would be 30 basis points.
Settlement of each tender offer is expected to occur on the fourth New
York Stock Exchange trading day following the Scheduled Expiration Date.
Holders may withdraw their tenders prior to 5:00 p.m. EDT on the Scheduled
Expiration Date of the cash tender offers, but not thereafter, except as may
be required by law.
Sunoco expects to use working capital and proceeds from a planned offering
of debt securities under its effective shelf registration statement to fund
the tender offer for its 9-3/8% Sinking Fund Debentures. In the event that
proceeds of this planned debt offering are not received prior to the
applicable settlement date, Sunoco will pay for the Debentures from working
capital. Aristech expects to use funds available to it to fund the purchase
of its 6-7/8% Notes.
Sunoco and Aristech have retained Citigroup Global Markets Inc., Credit
Suisse First Boston, LLC, and J.P. Morgan Securities, Inc. to serve as Dealer
Managers for the tender offers, and Global Bondholder Services Corporation to
serve as the depositary agent and information agent for the tender offers.
Requests for documents may be directed to Global Bondholder Services
Corporation by telephone at 866-470-4500 or 212-430-3774 or in writing at 65
Broadway - Suite 74, New York, NY, 10006. Questions regarding the tender
offers may be directed to Citigroup Global Markets Inc. at 800-558-3745,
Credit Suisse First Boston, LLC at 800-820-1653 or 212-538-0652, or J.P.
Morgan Securities Inc. at 866-834-4666.
This news release is not an offer to purchase or a solicitation of an
offer to sell any securities, which is being made only pursuant to the terms
of the Offer to Purchase, dated September 15, 2004. In any jurisdiction where
the laws require the tender offers to be made by a licensed broker or dealer,
the tender offers will be deemed made on behalf of Sunoco or Aristech by
Citigroup Global Markets Inc., Credit Suisse First Boston, LLC, and J.P.
Morgan Securities, Inc., or one or more registered brokers or dealers under
the laws of such jurisdiction.
This release shall not constitute an offer to sell or the solicitation of
an offer to buy the debt securities that Sunoco expects to offer under its
effective shelf registration statement.
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
This release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Sunoco and Aristech believe that their expectations are
based on reasonable assumptions. No assurance, however, can be given that
their goals will be achieved. A number of factors could cause actual results
to differ materially from the projections, anticipated results or other
expectations expressed in this release. While Sunoco and Aristech make these
forward-looking statements in good faith, neither Sunoco nor Aristech can
guarantee that the anticipated future results will be achieved. Risks and
uncertainties concerning Sunoco's business are more fully described in
Sunoco's Form 10-Q, filed with the Securities and Exchange Commission on
August 4, 2004. Sunoco undertakes no obligation to update any forward-looking
statements in this news release whether as a result of new information or
SOURCE Sunoco, Inc.