Summary
Energy Transfer LP (ET) has announced a significant financing transaction through the issuance of approximately $3.9 billion in new debt securities. This offering comprises $1.0 billion of 5.250% Senior Notes due 2029, $1.25 billion of 5.600% Senior Notes due 2034, and $1.25 billion of 6.050% Senior Notes due 2054, alongside $400 million of 7.125% Junior Subordinated Notes due 2054. The proceeds from these offerings are earmarked for crucial strategic initiatives, including funding a portion of the acquisition of WTG Midstream Holdings LLC, refinancing existing debt, and redeeming all outstanding Series A preferred units.
Key Highlights
- 1ET priced a multi-tranche debt offering totaling approximately $3.9 billion.
- 2The offering includes $3.463 billion in Senior Notes across three maturity dates (2029, 2034, 2054) and $400 million in Junior Subordinated Notes.
- 3The proceeds will be used to fund the acquisition of WTG Midstream Holdings LLC, refinance existing debt, and redeem Series A preferred units.
- 4The Series A preferred units will be redeemed on June 21, 2024, at a price of $1,009.88 per unit.
- 5The offerings are registered under the Securities Act of 1933 and are expected to close on June 21, 2024.
- 6The company entered into underwriting agreements with major financial institutions including Barclays Capital Inc., J.P. Morgan Securities LLC, MUFG Securities Americas Inc., TD Securities (USA) LLC, and Wells Fargo Securities, LLC.
Frequently Asked Questions
Energy Transfer LP is issuing approximately $3.9 billion in aggregate principal amount of new debt securities, comprising $3.463 billion in Senior Notes and $400 million in Junior Subordinated Notes.
The net proceeds are intended to fund all or a portion of the cash consideration for the acquisition of WTG Midstream Holdings LLC, refinance existing indebtedness (including borrowings under its revolving credit facility), redeem all outstanding Series A preferred units, and for general partnership purposes.
Energy Transfer LP is redeeming all of its outstanding Series A preferred units on June 21, 2024, at a redemption price of $1,009.88 per unit. This action is being funded in part by the proceeds from the new debt offerings.
Both the Senior Notes Offering and the Junior Notes Offering are expected to close on June 21, 2024, subject to customary closing conditions.