© Reuters
DALLAS – Energy Transfer LP (NYSE:) has announced the pricing of a multi-billion-dollar debt offering, which includes $1.25 billion in 5.550% senior notes due 2034 and $1.75 billion in 5.95% senior notes due 2054. Additionally, the company is offering $800 million in 8% junior subordinated notes due 2054. The offerings are expected to close on January 25, 2024, subject to customary closing conditions.
The proceeds from the sale, which total approximately $3.756 billion before expenses, are earmarked for refinancing existing debt, including borrowings under Energy Transfer’s revolving credit facility. The funds will also be used to redeem the company’s Series C, D, and E preferred units and for general partnership purposes.
The senior notes and junior subordinated notes were priced at 99.66%, 99.52%, and 100% of their face value, respectively. This move comes as Energy Transfer aims to streamline its capital structure and reduce its overall cost of capital.
Following the pricing announcement, the company has issued a notice to redeem all outstanding Series C and D preferred units, with the redemption prices being $25.607454 and $25.619877 per unit, respectively. These figures include unpaid distributions up until February 9, 2024, the designated Redemption Date.
The offerings are being managed by a consortium of banks, including Citigroup Global Markets Inc., Credit Agricole (OTC:) Securities (USA) Inc., Deutsche Bank (ETR:) Securities Inc., PNC Capital Markets LLC, and RBC Capital Markets, LLC.
Energy Transfer owns and operates a vast network of energy assets across the United States. The company’s strategic assets include over 125,000 miles of pipeline infrastructure, spanning 44 states and encompassing a wide range of energy-related operations.
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