NuStar Energy L.P. Announces Pricing of Preferred Units

SAN ANTONIO–(BUSINESS WIRE)–NuStar Energy L.P. (NYSE: NS) (“NuStar” or the “Partnership”) announced
today that it has priced an underwritten public offering of 6,000,000 of
its 9.00% Series C Fixed-to-Floating Rate Cumulative Redeemable
Perpetual Preferred Units (the “Preferred Units”) at a price of $25.00
per unit. The Partnership has granted the underwriters a 30-day option
to purchase up to an additional 900,000 Preferred Units from the
Partnership at the public offering price less the underwriting discount.
Distributions on the Preferred Units will be payable from and including
the date of original issue to, but not including, December 15, 2022, at
a rate of 9.00% per annum of the stated liquidation preference of
$25.00. On and after December 15, 2022, distributions on the Preferred
Units will accumulate at a percentage of the $25.00 liquidation
preference equal to an annual floating rate of three-month LIBOR plus a
spread of 6.88%. The offering is expected to close on or about November
30, 2017, subject to customary closing conditions.

NuStar expects to receive aggregate net proceeds from the sale of the
Preferred Units of approximately $144.7 million (assuming no exercise of
the option to purchase additional units and after deducting underwriting
discounts and commissions and estimated offering expenses). NuStar
intends to use the net proceeds of the offering for general partnership
purposes, including the funding of future capital expenditures and to
repay amounts outstanding under NuStar Logistics, L.P.’s revolving
credit agreement.

Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith
Incorporated, J.P. Morgan Securities LLC and RBC Capital Markets, LLC
are acting as joint booking-running managers for the offering. B. Riley
FBR, Inc., Citigroup Global Markets Inc., Barclays Capital Inc., U.S.
Bancorp Investments, Inc., SMBC Nikko Securities America, Inc., DNB
Markets, Inc., TD Securities (USA) LLC and BB&T Capital Markets, a
division of BB&T Securities, LLC, are acting as co-managers for the
offering. A copy of the prospectus supplement and accompanying base
prospectus relating to this offering may be obtained from any of the
underwriters, including Wells Fargo Securities, LLC, 608 2nd Avenue
South, Suite 1000, Minneapolis, Minnesota 55402, Attention: WFS Customer
Service, Telephone: (800) 645-3751; Merrill Lynch, Pierce, Fenner &
Smith Incorporated, 200 North College Street, NC1-004-03-43, Charlotte,
North Carolina 28255, Attention: Prospectus Department, Telephone: (800)
294-1322, Email: [email protected];
J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York
10179, Attention: Investment Grade Syndicate Desk, 3rd Floor, Telephone:
(212) 834-4533; and RBC Capital Markets, LLC, 200 Vesey Street, New
York, New York 10281, Attention: DCM Transaction Management, Telephone:
(866) 375-6829. You may also obtain these documents for free when they
are available by visiting the SEC’s website at www.sec.gov.

This news release does not constitute an offer to sell or a solicitation
of an offer to buy the securities described herein, nor shall there be
any sale of these securities in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction. The offering may be made only by means of a prospectus and
related prospectus supplement meeting the requirements of Section 10 of
the Securities Act of 1933, as amended.

NuStar Energy L.P., a publicly traded master limited partnership based
in San Antonio, is one of the largest independent liquids terminal and
pipeline operators in the nation. NuStar currently has approximately
9,300 miles of pipeline and 81 terminal and storage facilities that
store and distribute crude oil, refined products and specialty liquids.
NuStar’s combined system has approximately 96 million barrels of storage
capacity, and NuStar has operations in the United States, Canada,
Mexico, the Netherlands, including St. Eustatius in the Caribbean, and
the United Kingdom.

Cautionary Statement Regarding Forward-Looking Statements

This press release includes forward-looking statements regarding future
events, including the size, timing and results of the offering. All
forward-looking statements are based on NuStar’s beliefs as well as
assumptions made by and information currently available to NuStar. These
statements reflect NuStar’s current views with respect to future events
and are subject to various risks, uncertainties and assumptions. These
risks, uncertainties and assumptions are discussed in NuStar’s 2016
Annual Report on Form 10-K and subsequent filings with the SEC. NuStar
undertakes no obligation to update or revise any forward-looking
statement except as may be required by applicable law.

Contacts

NuStar Energy, L.P., San Antonio
Investors, Chris Russell,
Treasurer and Vice President Investor Relations
Investor Relations:
210-918-3507
or
Media, Mary Rose Brown, Executive Vice
President and Chief Administrative Officer,
Corporate
Communications: 210-918-2314
website: http://www.nustarenergy.com