Energy Transfer Operating, L.P. Announces Pricing of $4.0 Billion of Senior Notes
January 08 2019 - 7:17PM
Business Wire
Energy Transfer Operating, L.P. (formerly, Energy Transfer
Partners, L.P., and a subsidiary of Energy Transfer LP) (“ETO”)
today announced the pricing of its $750 million aggregate principal
amount of 4.500% senior notes due 2024, $1.5 billion aggregate
principal amount of 5.250% senior notes due 2029 and $1.75 billion
aggregate principal amount of 6.250% senior notes due 2049 at a
price to the public of 99.646%, 99.789% and 99.850%, respectively,
of their face value.
The sale of the senior notes is expected to settle on January
15, 2019, subject to the satisfaction of customary closing
conditions. ETO intends to use the net proceeds of approximately
$3.96 billion from this offering (i) to make an intercompany loan
to Energy Transfer LP (formerly, Energy Transfer Equity, L.P.)
(NYSE: ET), which will use the proceeds therefrom to repay in full
its $1.22 billion term loan due February 2, 2024, (ii) to repay in
full its 9.70% senior notes due March 15, 2019, its 9.00% senior
notes due April 15, 2019 and its subsidiary’s 8.125% senior notes
due June 1, 2019, (iii) to repay a portion of the borrowings under
its revolving credit facility and (iv) for general partnership
purposes.
Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC,
Merrill Lynch, Pierce, Fenner & Smith Incorporated, RBC Capital
Markets, LLC and SunTrust Robinson Humphrey, Inc. are acting as
joint book-running managers for the offering.
The offering of the senior notes is being made pursuant to an
effective shelf registration statement and prospectus filed by ETO
with the Securities and Exchange Commission (“SEC”). The offering
of the senior notes may be made only by means of a prospectus and
related prospectus supplement meeting the requirements of Section
10 of the Securities Act of 1933, as amended, copies of which may
be obtained from the following addresses:
Deutsche Bank Securities Inc. RBC Capital
Markets, LLC 60 Wall Street 200 Vesey Street New York, NY
10005-2836 New York, New York 10281 Attention: Prospectus Group
Attention: DCM Transaction Management Phone: 1-800-503-4611
Telephone: (866) 375-6829
E-mail: prospectus.cpdg@db.com
Goldman Sachs & Co. LLC SunTrust Robinson Humphrey, Inc.
Attention: Prospectus Department 303 Peachtree Street 200 West
Street Atlanta, Georgia 30308 New York, New York 10282-2198
Attention: Prospectus Department Telephone: 1-866-471-2526 Phone:
1-800-685-4786 Facsimile: 212-902-9316 Merrill Lynch,
Pierce, Fenner & Smith Incorporated 200 North College Street
NC1-004-03-43 Charlotte, North Carolina 28255-001 Attn: Prospectus
Department Phone: 1-800-294-1322
Email: dg.prospectus_requests@baml.com
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.’s general partner is owned by Energy Transfer LP
(NYSE: ET).
Statements about the offering may be forward-looking statements.
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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Energy Transfer Operating, L.P.Investor
Relations:William Baerg, Brent Ratliff, Lyndsay Hannah,
214-981-0795orMedia Relations:Vicki Granado and Lisa
Dillinger, 214-840-5820
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