Energy Transfer Partners, L.P. Announces Private Placement of $568 Million of Common Units with Energy Transfer Equity, L.P.
January 09 2017 - 8:05AM
Business Wire
Energy Transfer Partners, L.P. (NYSE: ETP) today announced that
it has entered into a definitive agreement with Energy Transfer
Equity, L.P. (NYSE: ETE) in connection with a private placement of
common units representing limited partner interests in ETP pursuant
to Section 4(a)(2) of the Securities Act of 1933, as amended. The
closing of the transaction, which is scheduled to occur on January
12, 2017, is conditioned upon the closing of ETE’s previously
announced $580 million private placement, or PIPE, financing
transaction.
Upon the closing of the transaction with ETE, ETP will receive
gross proceeds of approximately $568 million in exchange for the
issuance to ETE of approximately 15.8 million ETP common units. 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. ETP intends to use the net proceeds of the
transaction 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 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.
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.
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170109005397/en/
Investor Relations:Energy TransferLyndsay Hannah or Brent
Ratliff, 214-981-0795orMedia Relations:Granado Communications
GroupVicki Granado, 214-599-8785Cell: 214-498-9272
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