Energy Transfer LP unit Energy Transfer Operating LP completed an offering for a total of $4.0 billion of its senior notes; it will use the proceeds to make an intercompany loan to its parent company and to repay debt, according to a Jan. 15 SEC filing.
The offering included $750 million of 4.500% senior notes due 2024, priced at 99.646% of par; $1.5 billion of 5.250% senior notes due 2029, priced at 99.789% of par; and $1.75 billion of 6.250% senior notes due 2049, priced at 99.850% of par.
Energy Transfer Operating is set to loan part of the total proceeds from the offering, which it expects to be $3.96 billion, to its parent company. Energy Transfer intends to use the loan to repay a $1.22 billion term loan due Feb. 2, 2024.
The Energy Transfer subsidiary also intends to repay in full its 9.70% senior notes due March 15 and 9.00% senior notes due April 15 as well as a subsidiary's 8.125% senior notes due June 1. The remaining proceeds are earmarked for general partnership purposes, Energy Transfer Operating said.
Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Merrill Lynch Pierce Fenner & Smith Inc., RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc. acted as joint book-running managers for the offering.
Energy Transfer Operating was Energy Transfer Partners LP before a $26.55 billion merger with Energy Transfer Equity LP to simplify the Energy Transfer family's corporate structure.