Energy Transfer Operating, L.P. Announces Pricing of Concurrent Offerings of $4.5 Billion of Senior Notes & $1.6 Billion of P...
January 07 2020 - 8:30PM
Business Wire
Energy Transfer Operating, L.P. (formerly, Energy Transfer
Partners, L.P., and a subsidiary of Energy Transfer LP) (“ETO”)
today announced that it has priced an underwritten public offering
of $1.0 billion aggregate principal amount of its 2.900% senior
notes due 2025, $1.5 billion aggregate principal amount of its
3.750% senior notes due 2030 and $2.0 billion aggregate principal
amount of its 5.000% senior notes due 2050 (collectively, the
“senior notes”) at a price to the public of 99.924%, 99.843% and
99.914%, respectively, of their face value.
ETO also announced that it has priced an underwritten public
offering of 500,000 of its 6.750% Series F Fixed-Rate Reset
Cumulative Redeemable Perpetual Preferred Units (the “Series F
Preferred Units”) at a price of $1,000 per unit, and 1,100,000 of
its 7.125% Series G Fixed-Rate Reset Cumulative Redeemable
Perpetual Preferred Units (the “Series G Preferred Units,” and
together with the Series F Preferred Units, the “preferred units”)
at a price of $1,000 per unit.
The offering of senior notes and the offering of preferred units
are being conducted as separate offerings pursuant to separate
prospectus supplements and neither offering is contingent upon the
other. Each of the offerings is expected to settle on January 22,
2020, subject to the satisfaction of customary closing conditions.
ETO intends to use the aggregate net proceeds of approximately
$6.04 billion (before offering expenses) from both of the offerings
described herein to repay certain of its outstanding indebtedness,
including prepayment of certain senior indebtedness, and for
general partnership purposes.
Citigroup Global Markets Inc., Deutsche Bank Securities Inc.,
MUFG Securities Americas Inc., Natixis Securities Americas LLC and
TD Securities (USA) LLC are acting as joint book-running managers
for both of the offerings.
Each of the offerings is being made pursuant to an effective
shelf registration statement and prospectus filed by ETO with the
Securities and Exchange Commission (“SEC”) and may be made only by
means of a prospectus and prospectus supplement related to such
offering meeting the requirements of Section 10 of the Securities
Act of 1933, as amended, copies of which may be obtained from the
following addresses:
Citigroup Global Markets Inc.
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, New York 11717
Telephone: 1-800-831-9146
Email: prospectus@citi.com
Natixis Securities Americas LLC
1251 Avenue of the Americas
New York, New York 10020
Attention: DCM Syndicate
Phone: 1-212-698-3108
Deutsche Bank Securities Inc.
60 Wall Street
New York, NY 10005-2836
Attention: Prospectus Group
Phone: 1-800-503-4611
E-mail: prospectus.cpdg@db.com
TD Securities (USA) LLC
31 West 52nd Street, 2nd Floor
New York, New York 10019
Attention: DCM Syndicate
Phone: 1-855-495-9846
MUFG Securities Americas Inc.
1221 Avenue of the Americas, 6th Floor
New York, New York 10020
Attn: Capital Markets Group
Phone: 1-877-649-6848
You may also obtain these documents for free when they are
available by visiting EDGAR on the SEC web site at www.sec.gov.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities described herein,
nor shall there be any sale of these securities in any state or
jurisdiction in which such an offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
Energy Transfer Operating, L.P. owns and operates one of
the largest and most diversified portfolios of energy assets in the
United States. Strategically positioned in all of the major U.S.
production basins, its core operations include complementary
natural gas midstream, intrastate and interstate transportation and
storage assets; crude oil, natural gas liquids (NGL) and refined
product transportation and terminalling assets; NGL fractionation;
and various acquisition and marketing assets. Energy Transfer
Operating, L.P. also owns Lake Charles LNG Company, as well as the
general partner interests, the incentive distribution rights and
28.5 million common units of Sunoco LP (NYSE: SUN), and the general
partner interest and 46.1 million common units of USA Compression
Partners, LP (NYSE: USAC). Energy Transfer Operating, L.P.’s
general partner is owned by Energy Transfer LP (NYSE: ET).
Statements about the offerings may be forward-looking statements
as defined under federal law. Forward-looking statements can be
identified by words such as “anticipates,” “believes,” “intends,”
“projects,” “plans,” “expects,” “continues,” “estimates,” “goals,”
“forecasts,” “may,” “will” and other similar expressions. These
forward-looking statements rely on a number of assumptions
concerning future events and are subject to a number of
uncertainties and factors, many of which are outside the control of
ETO, and a variety of risks that could cause results to differ
materially from those expected by management of ETO. Important
information about issues that could cause actual results to differ
materially from those expected by management of ETO can be found in
ETO’s public periodic filings with the SEC, including its Annual
Report on Form 10-K. ETO undertakes no obligation to update or
revise forward-looking statements to reflect changed assumptions,
the occurrence of unanticipated events or changes to future
operating results over time.
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version on businesswire.com: https://www.businesswire.com/news/home/20200107006151/en/
Energy Transfer Operating, L.P. Investor
Relations: William Baerg, Brent Ratliff, Lyndsay Hannah,
214-981-0795 or Media Relations: Vicki Granado and Lisa
Dillinger, 214-840-5820
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