Energy Transfer Operating, L.P. Announces Pricing of $4.0 Billion of Senior Notes

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:

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190108006147/en/

News by QuoteMedia

www.quotemedia.com