Energy Transfer Equity, L.P. Announces Pricing of $580 Million PIPE Financing & Purchase of Common Units of Energy Transfer P...
January 09 2017 - 8:00AM
Business Wire
Energy Transfer Equity, L.P. (NYSE: ETE) today announced that it
has entered into definitive agreements with certain accredited
investors in connection with a private placement, or PIPE,
financing transaction pursuant to Section 4(a)(2) of the Securities
Act of 1933, as amended. Upon the closing of the transaction, ETE
will receive gross proceeds of approximately $580 million in
exchange for the issuance to such investors of 32,222,225 common
units representing limited partner interests in ETE.
The closing of the transaction, which is subject to customary
closing conditions, is scheduled to occur on January 12, 2017,
unless otherwise agreed to by the parties.
Barclays and J.P. Morgan are acting as lead placement agents for
the ETE private placement.
ETE intends to use the net proceeds of the PIPE transaction to
purchase approximately 15.8 million newly issued common units
representing limited partner interests in Energy Transfer Partners,
L.P. (NYSE: ETP) pursuant to a purchase agreement dated January 6,
2017. The ETP units will be sold to ETE in a private placement
pursuant to Section 4(a)(2) of the Securities Act, as amended. Upon
closing, ETP will receive gross proceeds of approximately $568
million. The purchase price per unit is equal to the volume
weighted average trading price of ETP’s common units for the 10
trading day period ending January 5, 2017. The closing of the ETP
unit purchase is also scheduled to occur on January 12, 2017,
unless otherwise agreed to by the parties. ETP intends to use the
net proceeds from the sale of its common units to repay existing
indebtedness and for general partnership purposes.
The purchase of ETP common units by ETE has been approved by the
boards of directors and conflicts committees of both
partnerships.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities, nor shall there be
any sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such
jurisdiction.
The securities to be sold in the private placement have not been
registered under the Securities Act of 1933, as amended, or state
securities laws and may not be offered or sold in the United States
absent registration with the Securities and Exchange Commission or
an applicable exemption from such registration requirements.
Energy Transfer Equity, L.P. (NYSE: ETE) is a
master limited partnership that owns the general partner and 100%
of the incentive distribution rights (IDRs) of Energy Transfer
Partners, L.P. (NYSE: ETP) and Sunoco LP (NYSE: SUN). ETE
also owns approximately 2.6 million ETP common units and
approximately 81.0 million ETP Class H Units, which track 90% of
the underlying economics of the general partner interest and IDRs
of Sunoco Logistics Partners L.P. (NYSE: SXL). On a
consolidated basis, ETE’s family of companies owns and operates
approximately 71,000 miles of natural gas, natural gas liquids,
refined products, and crude oil pipelines. For more information,
visit the Energy Transfer Equity, L.P. website
at www.energytransfer.com.
Energy Transfer Partners, L.P. (NYSE: ETP) is
a master limited partnership that owns and operates one of the
largest and most diversified portfolios of energy assets
in the United States. ETP’s subsidiaries
include Panhandle Eastern Pipe Line Company, LP (the
successor of Southern Union Company) and Lone Star NGL
LLC, which owns and operates natural gas liquids storage,
fractionation and transportation assets. In total, ETP currently
owns and operates more than 62,500 miles of natural gas and natural
gas liquids pipelines. ETP also owns the general partner, 100% of
the incentive distribution rights, and approximately 67.1 million
common units of Sunoco Logistics Partners L.P. (NYSE:
SXL), which operates a geographically diverse portfolio of
pipelines, terminalling and acquisition and marketing assets. ETP
recently acquired the general partner, 100% of the incentive
distribution rights, and an approximate 65% limited partnership
interest in PennTex Midstream Partners, LP (Nasdaq:
PTXP), which is a growth-oriented master limited partnership that
provides natural gas gathering and processing and residue gas and
natural gas liquids transportation services to producers in
northern Louisiana. ETP’s general partner is owned
by Energy Transfer Equity, L.P. (NYSE: ETE). For more
information, visit the Energy Transfer Partners,
L.P. website at www.energytransfer.com.
Forward-Looking Statements
This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. Such forward-looking statements are subject
to a variety of known and unknown risks, uncertainties, and other
factors that are difficult to predict and many of which are beyond
management’s control. An extensive list of factors that can affect
future results are discussed in ETE’s Annual Reports on Form 10-K
and other documents filed from time to time with the Securities and
Exchange Commission. ETE undertakes no obligation to update or
revise any forward-looking statement to reflect new information or
events.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170109005393/en/
Investor Relations:Energy TransferLyndsay Hannah or Brent
Ratliff, 214-981-0795orMedia Relations:Granado Communications
GroupVicki Granado, 214-599-8785Cell: 214-498-9272
Sunoco Logistics Partners L.P. (NYSE:ETP)
Historical Stock Chart
From Mar 2024 to Apr 2024
Sunoco Logistics Partners L.P. (NYSE:ETP)
Historical Stock Chart
From Apr 2023 to Apr 2024