8-KMaterial AgreementsSecurities & ListingExhibits & Filings

Energy Transfer LP 8-K Report, Material Agreement (Jan 12, 2017)

Filed January 12, 2017For Securities:ETET-PI

Summary

Energy Transfer LP (ET) announced a private placement of its common units on January 6, 2017, which closed on January 12, 2017. The company sold approximately 32.2 million common units to institutional investors at $18.00 per unit, generating gross proceeds of about $580 million. This capital raise was strategically earmarked for purchasing newly issued common units of Energy Transfer Partners, L.P. (ETP).

Key Highlights

  • 1Private placement of 32,222,225 common units of Energy Transfer LP.
  • 2Offering price set at $18.00 per common unit.
  • 3Gross proceeds raised approximately $580 million.
  • 4Proceeds are intended to fund the purchase of 15,785,056 common units of Energy Transfer Partners, L.P. (ETP).
  • 5The transaction closed on January 12, 2017.
  • 6The offering was conducted as a private placement, relying on an exemption from standard registration requirements (Section 4(a)(2) of the Securities Act).

Frequently Asked Questions

The primary purpose was to raise approximately $580 million in gross proceeds. These funds were specifically allocated to purchase newly issued common units of Energy Transfer Partners, L.P. (ETP), indicating a strategic move to strengthen or acquire a stake in its subsidiary.

The offering was structured as a private placement under an exemption from registration requirements (Section 4(a)(2) of the Securities Act). This often allows companies to raise capital more quickly and with fewer disclosure obligations compared to a public offering.

Energy Transfer LP entered into a common unit purchase agreement with institutional investors, including customary representations, warranties, and covenants. A registration rights agreement was also executed, obligating ET to file a registration statement for the resale of the common units and providing purchasers with piggyback registration rights.

Energy Transfer LP's purchase of ETP units suggests a deepening of its relationship or control over ETP. The specific number of ETP units to be acquired (15,785,056) and the approval by the boards and conflicts committees of both entities highlight the strategic importance of this internal transaction.