Summary
Energy Transfer LP (ET) has announced the pricing of a significant public offering of $1.75 billion in aggregate principal amount of junior subordinated notes due 2057. This offering consists of two series: $650 million of Series 2026A notes with a 6.550% annual interest rate and $1.1 billion of Series 2026B notes with a 6.700% annual interest rate. The offering is expected to close on July 20, 2026. The primary use of the net proceeds, estimated at approximately $1.73 billion, will be to redeem all outstanding Series H Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units. These preferred units are redeemable starting August 15, 2026. Additionally, the proceeds will be used to refinance existing indebtedness, including repaying commercial paper and borrowings under the company's revolving credit facility, as well as for general partnership purposes. This move signals a proactive approach to managing its capital structure and debt obligations.
Key Highlights
- 1Energy Transfer LP priced a $1.75 billion public offering of junior subordinated notes due 2057.
- 2The offering includes $650 million in Series 2026A notes (6.550% interest) and $1.1 billion in Series 2026B notes (6.700% interest).
- 3Net proceeds are approximately $1.73 billion and are earmarked for redeeming all outstanding Series H Preferred Units.
- 4The redemption of Series H Preferred Units is planned to commence on August 15, 2026.
- 5Proceeds will also be used to refinance existing debt, including commercial paper and revolving credit facility borrowings.
- 6The offering is expected to close on July 20, 2026, subject to customary closing conditions.