Energy Transfer Equity Announces Pricing of Senior Notes Due Jan 2024
OREANDA-NEWS. November 26, 2013. Energy Transfer Equity, L.P. (NYSE: ETE) announced that it has priced its previously announced offering of 5.875% senior notes due January 2024 (the “Notes”).
In addition, the Company increased the size of the offering of the Notes from USD400.0 million to USD 450.0 million. The Notes were priced at par, resulting in total proceeds of approximately USD 445.5 million (before expenses).
The Notes initially will be secured on a first-priority basis with the loans under ETE’s senior secured revolving credit facility, ETE’s senior secured term loan facility and the obligations under ETE’s existing 7.500% Senior Notes due 2020 (the “2020 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 the 2020 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 December 2, 2013.
ETE intends to use the net proceeds from this offering, together with a portion of the net proceeds from its new USD 1.0 billion term loan credit facility and its new USD 600.0 million revolving credit facility, to fund its previously announced tender offer (the “Tender Offer”) to purchase for cash up to an aggregate of USD 600.0 million principal amount of its outstanding 2020 Notes from registered holders of the 2020 Notes, including any related fees, expenses and accrued interest.
Credit Suisse, Deutsche Bank Securities, Citigroup and Goldman, Sachs & Co. are acting as joint global coordinators and joint book-running managers for the offering. In addition, Barclays, BofA Merrill Lynch, Mitsubishi UFJ Securities, Mizuho Securities, Morgan Stanley, RBC Capital Markets, RBS Securities Inc. and UBS Investment Bank are joint book-running managers.
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