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.