8-KMaterial AgreementsShareholder MattersCorporate Changes+2

Energy Transfer LP 8-K Report, Material Agreement (Nov 13, 2007)

Filed November 13, 2007For Securities:ETET-PI

Summary

Energy Transfer LP (ET) filed an 8-K on November 12, 2007, primarily to disclose a material definitive agreement related to a significant secondary offering of its common units. On November 7, 2007, Energy Transfer Equity, L.P. entered into an underwriting agreement for the sale of approximately 7.34 million common units by existing unitholders, with an option for underwriters to purchase an additional 1.1 million units. The offering price was $31.70 per unit, with proceeds going to the selling unitholders. This transaction was registered under the Securities Act of 1933. The filing also announced a change in the partnership's fiscal year from August 31 to December 31, effective November 9, 2007, which will result in a transitional four-month reporting period and a modification to the upcoming distribution schedule.

Key Highlights

  • 1Secondary offering of approximately 7.34 million common units by selling unitholders at $31.70 per unit.
  • 2Underwriters have a 30-day option to purchase up to an additional 1.1 million common units to cover over-allotments.
  • 3Proceeds from the unit sale will go directly to the selling unitholders, not to the partnership itself.
  • 4Partnership's fiscal year has been changed from August 31 to December 31, effective November 9, 2007.
  • 5A transitional four-month reporting period (September 1, 2007 - December 31, 2007) will be filed.
  • 6Distribution policy adjusted to align with the new fiscal year, with a one-time four-month distribution followed by quarterly distributions.
  • 7The offering was registered under the Securities Act of 1933 via a Form S-3/A registration statement.

Frequently Asked Questions

The common units are being sold by existing unitholders, not by Energy Transfer LP itself. The proceeds from this sale will go directly to these selling unitholders.

The partnership is changing its fiscal year end from August 31 to December 31. This requires a transition period and will alter the timing and frequency of future financial reporting and distributions, moving towards quarterly reporting and distributions based on the calendar year.

No, the filing explicitly states that the selling unitholders will receive all of the proceeds from the sale of the common units. This is a secondary offering, not a primary offering by the company.

The underwriters have the option to buy up to an additional 1.1 million units at the same price ($31.70) within 30 days. This is a standard provision to cover potential over-allotments in the offering and could increase the total number of units sold if exercised.