Why is Energy Transfer issuing these junior subordinated notes?

The company plans to use approximately $1.73 billion of net proceeds (before expenses) to redeem all its 6.500% Series H perpetual preferred units and to repay commercial paper and revolver borrowings, with any remainder for general partnership purposes.

Is Energy Transfer redeeming the Series H Preferred Units now?

No. This 8-K and the accompanying press release explicitly state they are not a notice of redemption. The units become redeemable starting August 15, 2026, and a formal redemption notice will be issued at a later date.

What are the interest rates and maturity of the new notes?

The Series 2026A notes ($650 million) bear interest at 6.550% and the Series 2026B notes ($1.10 billion) bear 6.700%. Both series are junior subordinated notes due 2057, and the rates are described as initial rates.

When will the offering close, and how was it registered?

The offering is expected to close on July 20, 2026, subject to customary closing conditions. It was made under an effective Form S-3 shelf registration (File No. 333-279982) and a prospectus supplement dated July 6, 2026.

Could the underwriters benefit from the transaction beyond their underwriting role?

Possibly. The filing discloses that affiliates of the underwriters are lenders under the revolving credit facility, may hold Series H preferred units, and act as commercial paper dealers, so they may receive part of the proceeds through debt repayment or preferred redemption.

ET/ET-PI 8-K: Material Agreements

01—Abstract

Summary

Summary of the 8-K filed July 8, 2026. Cited figures are marked; the original filing is the authoritative source.

Energy Transfer LP (NYSE: ET) disclosed in this 8-K, filed July 8, 2026, that it entered into an underwriting agreement dated July 6, 2026 for a $1.75 billion^a offering of junior subordinated notes due 2057, consisting of $650 million of Series 2026A notes at 6.550% and $1.10 billion of Series 2026B notes at 6.700%.

Both tranches were priced at 100% of face value, and the offering is expected to close July 20, 2026, subject to customary conditions. The offering was made under an existing Form S-3 shelf registration. The primary stated use of proceeds, approximately $1.73 billion^b before offering expenses, is to redeem all outstanding 6.500% Series H Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units.

Those units become redeemable beginning August 15, 2026, and the filing explicitly states that it is not a notice of redemption; a separate notice will be issued later. The remaining proceeds would be used to refinance existing indebtedness, including repaying commercial paper and revolver borrowings, and for general partnership purposes. For investors, the transaction is largely a refinancing that swaps perpetual preferred equity and short-term or floating debt for long-dated junior subordinated notes with a 2057 maturity.

The filing notes that several underwriters and their affiliates are lenders under the revolver, may hold Series H units, and are commercial paper dealers, so they may receive part of the proceeds. The filing does not disclose the company's leverage, coverage, or earnings impact, so those effects cannot be assessed from this document alone.

02—Key points

Key Highlights

Energy Transfer priced $1.75 billion of junior subordinated notes due 2057: $650M Series 2026A at 6.550% and $1.10B Series 2026B at 6.700%, both at 100% of face value.
Net proceeds of roughly $1.7325 billion (before expenses) are earmarked primarily to redeem all outstanding 6.500% Series H Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units.
Series H preferred units become redeemable from August 15, 2026; this 8-K is not itself a redemption notice, and a separate notice will follow.
Remaining proceeds would refinance existing debt, including commercial paper and revolving credit facility borrowings, and fund general partnership purposes.
Expected settlement is July 20, 2026, subject to customary closing conditions.
The offering was registered under Form S-3 (File No. 333-279982), effective June 6, 2024, as amended and supplemented by a July 6, 2026 prospectus supplement.
Several underwriters and affiliates are revolver lenders, potential Series H holders, and commercial paper dealers, so they may receive a share of the proceeds.

03—Questions

Frequently Asked Questions

Why is Energy Transfer issuing these junior subordinated notes?
The company plans to use approximately $1.73 billion of net proceeds (before expenses) to redeem all its 6.500% Series H perpetual preferred units and to repay commercial paper and revolver borrowings, with any remainder for general partnership purposes.
Is Energy Transfer redeeming the Series H Preferred Units now?
No. This 8-K and the accompanying press release explicitly state they are not a notice of redemption. The units become redeemable starting August 15, 2026, and a formal redemption notice will be issued at a later date.
What are the interest rates and maturity of the new notes?
The Series 2026A notes ($650 million) bear interest at 6.550% and the Series 2026B notes ($1.10 billion) bear 6.700%. Both series are junior subordinated notes due 2057, and the rates are described as initial rates.
When will the offering close, and how was it registered?
The offering is expected to close on July 20, 2026, subject to customary closing conditions. It was made under an effective Form S-3 shelf registration (File No. 333-279982) and a prospectus supplement dated July 6, 2026.
Could the underwriters benefit from the transaction beyond their underwriting role?
Possibly. The filing discloses that affiliates of the underwriters are lenders under the revolving credit facility, may hold Series H preferred units, and act as commercial paper dealers, so they may receive part of the proceeds through debt repayment or preferred redemption.

04—Continue

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