8-KMaterial AgreementsExhibits & Filings

Energy Transfer LP 8-K Report, Material Agreement (Jun 4, 2021)

Filed June 4, 2021For Securities:ETET-PI

Summary

Energy Transfer LP (ET) filed an 8-K on June 3, 2021, to report on the execution of an Underwriting Agreement on June 1, 2021, for a public offering of 6.500% Series H Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units. The offering involves 900,000 preferred units priced at $1,000.00 each, raising a significant amount of capital for the Partnership. The transaction was registered under a Form S-3 registration statement and a related Prospectus Supplement. The closing is expected on June 15, 2021, subject to standard closing conditions. This issuance of preferred units represents a strategic move by Energy Transfer to bolster its capital structure. Investors should note that the underwriters and their affiliates are existing lenders to ET, which may lead to them receiving a portion of the net proceeds from this offering. The terms of the Underwriting Agreement, including customary representations, warranties, and indemnification clauses, are detailed, providing a framework for the transaction. This event is crucial for understanding ET's ongoing financing activities and its commitment to preferred equity financing.

Key Highlights

  • 1Energy Transfer LP entered into an Underwriting Agreement on June 1, 2021, for a public offering of preferred units.
  • 2The offering consists of 900,000 units of 6.500% Series H Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units.
  • 3The price to the public for the Series H Preferred Units is $1,000.00 per unit.
  • 4The offering is registered under a Form S-3 registration statement, effective June 1, 2021, and supplemented by a Prospectus Supplement filed June 3, 2021.
  • 5The expected closing date for the offering is June 15, 2021, subject to customary closing conditions.
  • 6Underwriters and their affiliates are existing lenders to ET and may receive a portion of the offering proceeds.
  • 7The Underwriting Agreement includes standard provisions such as representations, warranties, indemnification, and termination clauses.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report Energy Transfer LP's entry into a material definitive agreement, specifically an Underwriting Agreement for a public offering of its Series H Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units.

Energy Transfer LP is offering 900,000 Series H Preferred Units at $1,000.00 per unit, which would result in gross proceeds of $900 million, before deducting underwriting discounts and commissions.

The Series H Preferred Units carry a fixed-rate reset cumulative redeemable perpetual dividend of 6.500% annually. They are redeemable and perpetual, meaning they have specific characteristics regarding dividend payments and the company's obligation to redeem them.

Yes, the filing notes that affiliates of the underwriters are lenders under Energy Transfer's existing credit facilities. This means these entities may engage in transactions with ET and potentially receive a portion of the net proceeds from this offering, which is a common disclosure in such agreements.