8-KLeadership ChangesMaterial AgreementsFinancial Events+2

Energy Transfer LP 8-K Report, Material Agreement (Feb 14, 2006)

Filed February 14, 2006For Securities:ETET-PI

Summary

This Form 8-K filing by Energy Transfer Equity, L.P. (ET) on February 14, 2006, reports on several significant corporate actions that occurred around February 7-8, 2006. The primary event is the closing of a substantial offering of 21,000,000 common units, with an additional 3,150,000 units sold under an over-allotment option, raising significant capital for the company. This offering was underwritten by a group of underwriters and priced at $21.00 per unit. Furthermore, the filing details the establishment of the Energy Transfer Equity, L.P. Long-Term Incentive Plan, effective February 8, 2006, designed to incentivize employees, consultants, and directors through various unit-based awards. Additionally, the company secured a new $500 million revolving credit facility with a swingline option, further strengthening its financial flexibility. The report also notes the election of Ray C. Davis and Kelcy L. Warren as Co-Chairmen of the Board of Directors for the General Partner, aligning with their roles at Energy Transfer Partners GP, L.P.

Key Highlights

  • 1Closing of a firm commitment underwritten offering of 21,000,000 common units at $21.00 per unit, with an additional 3,150,000 units sold to cover over-allotments.
  • 2Establishment of the Energy Transfer Equity, L.P. Long-Term Incentive Plan, effective February 8, 2006, for employees, consultants, and directors.
  • 3The Plan allows for the grant of restricted units, phantom units, unit options, and distribution equivalent rights, with an aggregate of 3,000,000 Common Units available for awards.
  • 4Execution of a $500 million revolving credit facility on February 8, 2006, providing significant borrowing capacity.
  • 5The Credit Facility includes a swingline loan option and is secured by certain partnership assets, including ETP units.
  • 6Election of Ray C. Davis and Kelcy L. Warren as Co-Chairmen of the Board of Directors of the General Partner on February 8, 2006.
  • 7Amendments and restatements of the Partnership's Agreement of Limited Partnership and the General Partner's Regulations in connection with the IPO closing.

Frequently Asked Questions

The primary financial event was the closing of a large underwritten offering of 21,000,000 common units of Energy Transfer Equity, L.P. at $21.00 per unit, with an additional 3,150,000 units sold to cover over-allotments. This raised substantial capital for the company.

The Long-Term Incentive Plan, effective February 8, 2006, is designed to incentivize and retain employees, consultants, and directors of the General Partner and its affiliates by providing awards such as restricted units, phantom units, and unit options. This aligns their interests with those of the Partnership's unitholders.

Energy Transfer Equity, L.P. entered into a $500 million revolving credit facility with Wachovia Bank as administrative agent. It includes a $10 million swingline option and can be increased by up to $100 million with consent. The facility bears interest at either a base rate or Eurodollar rate plus applicable margins, and borrowings are secured by certain partnership assets, including ETP units.

On February 8, 2006, Messrs. Ray C. Davis and Kelcy L. Warren were elected as Co-Chairmen of the Board of Directors of the General Partner. They hold similar leadership positions at Energy Transfer Partners GP, L.P.