Summary
Energy Transfer LP (ET) announced on January 25, 2024, the successful completion of two concurrent underwritten public offerings: one for senior notes totaling $3 billion and another for junior subordinated notes amounting to $800 million. The senior notes consist of $1.25 billion of 5.550% notes due 2034 and $1.75 billion of 5.950% notes due 2054. The junior subordinated notes are 8.000% notes due 2054. These offerings were registered under the Securities Act of 1933 and were made pursuant to effective registration statements and prospectus supplements filed with the SEC. The proceeds from these issuances are expected to strengthen ET's balance sheet and provide flexibility for future operations and growth initiatives. Investors should note the significant debt issuance, which increases the company's leverage but also provides substantial capital.
Key Highlights
- 1Completed concurrent offerings of $3.0 billion in Senior Notes and $0.8 billion in Junior Subordinated Notes on January 25, 2024.
- 2Senior Notes include $1.25 billion of 5.550% notes due 2034 and $1.75 billion of 5.950% notes due 2054.
- 3Junior Subordinated Notes consist of $800 million of 8.000% notes due 2054.
- 4All notes were issued under an existing Indenture, supplemented by specific indentures for senior and junior subordinated notes.
- 5Offerings were registered under the Securities Act of 1933, with relevant prospectus supplements filed with the SEC.
- 6Legal opinions and consents from Latham & Watkins LLP related to the issuances are included as exhibits.