Energy Transfer Equity, L.P. (NYSE: ETE) today announced
the pricing of $1.0 billion aggregate principal amount of its 4.25%
senior notes due March 15, 2023 (the “Notes”). The Notes were priced at
99.0%, resulting in total proceeds of approximately $990,000,000 (before
expenses). The Notes initially will be secured on a first-priority basis
with the loans and obligations under ETE’s senior secured revolving
credit facility, senior secured term loan facility and existing senior
notes, by a lien on substantially all of ETE’s and certain of ETE’s
subsidiaries’ tangible and intangible assets that from time to time
secure ETE’s obligations under such indebtedness, subject to certain
exceptions and permitted liens and subject to the terms of a collateral
agency agreement. The liens securing the Notes will be released in full
if liens do not secure more than a threshold level of senior obligations
(so long as liens securing ETE’s existing senior notes are similarly
released), after which the Notes will be unsecured. The Notes will be
ETE’s senior obligations, ranking equally in right of payment with ETE’s
other existing and future unsubordinated indebtedness and senior to any
of ETE’s future subordinated indebtedness. The offering is expected to
close on October 18, 2017, subject to customary closing conditions.
ETE intends to use the net proceeds from the offering to repay a portion
of the outstanding indebtedness under ETE’s senior secured term loan
facility and for general partnership purposes.
Morgan Stanley and Mizuho Securities are acting as joint book-running
managers for the offering. The offering of the Notes is being made
pursuant to an effective shelf registration statement and prospectus
filed by ETE with the Securities and Exchange Commission (“SEC”). The
offering of the 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:
Morgan Stanley & Co. LLC
Attn: Prospectus Department
180
Varick Street, 2nd Floor
New York, New York 10014
Phone: (866)
718-1649
prospectus@morganstanley.com
Mizuho Securities USA LLC
320 Park Avenue – 12th Floor
New
York, New York 10022
Attn: Debt Capital Markets
Phone: (866)
271-7403
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 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 Lake Charles LNG Company. On a
consolidated basis, ETE’s family of companies owns and operates a
diverse portfolio of natural gas, natural gas liquids, crude oil and
refined products assets, as well as retail and wholesale motor fuel
operations and LNG terminalling.
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 ETE,
and a variety of risks that could cause results to differ materially
from those expected by management of ETE. Important information about
issues that could cause actual results to differ materially from those
expected by management of ETE can be found in ETE’s public periodic
filings with the SEC, including its Annual Report on Form 10-K. ETE
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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