Energy Transfer Partners, L.P. Announces Tender Offer to Purchase Common Units of PennTex Midstream Partners, LP for $20.00 Per Unit in Cash
Energy Transfer Partners, L.P. (NYSE: ETP) (“ETP”) today
announced its tender offer to purchase all of the outstanding common
units representing limited partner interests in PennTex Midstream
Partners, LP (NASDAQ: PTXP) (“PennTex”) not currently owned by ETP for
$20.00 per common unit in cash. ETP currently owns approximately 32.4%
of the outstanding PennTex common units. The tender offer will expire on
June 19, 2017, unless the offer is extended in accordance with its terms.
There can be no assurance that the tender offer will be completed. The
tender offer is conditioned upon, among other things, there being
validly tendered and not withdrawn sufficient PennTex common units such
that, following the closing of the tender offer, ETP and its affiliates
own over 80% of the outstanding PennTex common units (the “minimum
tender condition”), unless such condition is waived by ETP. If the
minimum tender condition is waived by ETP it shall remain a non-waivable
condition that a majority of the PennTex common units held by
unitholders that are not affiliates of ETP are validly tendered and not
withdrawn. The tender offer is also subject to other customary
conditions, as specified in the offer documents. The tender offer is not
subject to a financing condition. ETP expects to pay the offer
consideration from cash on hand and/or borrowings under ETP’s credit
facilities.
Following the purchase by ETP of PennTex common units in the tender
offer that would provide ETP and its affiliates with greater than 80% of
the outstanding PennTex common units, ETP will exercise its limited call
right provided for in the PennTex partnership agreement, which will
result in the acquisition by ETP of all outstanding PennTex common
units. If the limited call right is exercised, the remaining holders of
PennTex common units will receive at least the same cash price per
common unit as paid in the tender offer. If ETP waives the minimum
tender condition and ETP accepts for purchase PennTex common units upon
completion of the offer but ETP and its affiliates do not own more than
80% of the then outstanding PennTex common units, ETP cannot exercise
the limited call right provided for in the PennTex partnership agreement.
The offer to purchase, letter of transmittal and related documents will
be mailed to unitholders of record of PennTex and will also be made
available for distribution to beneficial owners of PennTex common units.
Important Information
This press release is for informational purposes only, and is neither an
offer to purchase nor a solicitation of an offer to sell securities. The
solicitation of tenders of PennTex common units will only be made
pursuant to the offer to purchase and related materials that ETP will be
mailing to holders of PennTex common units. Unitholders should read
those materials carefully because they contain important information,
including the various terms and conditions of the offer. Unitholders can
obtain copies of the offer to purchase, letter of transmittal and
related materials filed by ETP as part of the statement on Schedule TO
with the U.S. Securities Exchange Commission (the “SEC”) on May 18, 2017
through the SEC’s website at www.sec.gov
without charge. Unitholders may also obtain copies of the offer to
purchase and related materials, when and as filed with the SEC, without
charge from ETP or by written or oral request directed to MacKenzie
Partners, Inc., at (800) 322-2885.
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.
Strategically positioned in all of the major U.S. production basins, ETP
owns and operates a geographically diverse portfolio of 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. 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170518006463/en/
Copyright Business Wire 2017
Source: Business Wire
(May 18, 2017 - 5:02 PM EDT)
News by QuoteMedia
www.quotemedia.com