8-KMaterial AgreementsExhibits & Filings

Energy Transfer LP 8-K Report, Material Agreement (Apr 4, 2016)

Filed April 4, 2016For Securities:ETET-PI

Summary

This 8-K filing by Energy Transfer LP (ET) on April 4, 2016, primarily concerns a Registration Rights Agreement entered into between Energy Transfer Equity, L.P. (ETE), a related entity, and Sunoco LP (SUN). This agreement stems from a private transaction where ETE acquired 2,236,158 common units of SUN. The core of the agreement is that SUN will file a shelf registration statement to allow for the resale of these acquired SUN units, upon request from the holders of a majority of SUN's outstanding units. This action is intended to facilitate the eventual liquidity and marketability of these units for ETE. For investors, this filing signifies a step towards providing ETE with the ability to potentially sell its Sunoco LP units in the public market. While the filing itself doesn't change the underlying value of ET or SUN, it addresses the registration of a significant block of Sunoco LP units held by ETE. The timeline for this registration is contingent on a request from SUN unit holders and requires SUN to use reasonable efforts to file the registration statement within 45 days of such a request, aiming for effectiveness thereafter. Investors should monitor future filings for any updates regarding the effectiveness of this registration statement and potential market activity of these SUN units.

Key Highlights

  • 1Energy Transfer Equity (ETE) acquired 2,236,158 Sunoco LP (SUN) common units in a private transaction.
  • 2ETE and SUN entered into a Registration Rights Agreement on March 31, 2016.
  • 3The agreement mandates SUN to file a shelf registration statement for the SUN units held by ETE, upon request.
  • 4The filing aims to enable the resale of the acquired SUN units in the public market.
  • 5SUN is required to use reasonable efforts to file the registration statement within 45 days of a valid request.
  • 6The transaction was conducted as a private placement exempt from registration under Section 4(a)(2) of the Securities Act of 1933.

Frequently Asked Questions

The primary purpose of the Registration Rights Agreement is to allow Energy Transfer Equity (ETE) to register the Sunoco LP (SUN) common units it acquired in a private transaction. This registration will enable ETE to potentially sell these SUN units in the public market, providing liquidity.

Energy Transfer Equity (ETE) acquired the Sunoco LP (SUN) units from Sunoco LP itself in a private transaction. This acquisition involved 2,236,158 SUN common units and was exempt from registration under Section 4(a)(2) of the Securities Act of 1933.

Sunoco LP is obligated to file a shelf registration statement for the SUN units held by ETE upon the request of holders of a majority of SUN's outstanding units. SUN must use reasonable efforts to file this statement within 45 days of such a request and have it become effective as soon as reasonably practicable thereafter, subject to certain conditions.

No, this filing does not indicate an immediate sale. It establishes the framework and commitment for Sunoco LP to register the units held by ETE, which is a necessary step for future resale. The actual sale would depend on ETE's decision and market conditions once the registration statement is effective.