An Energy Transfer LP subsidiary priced an underwritten public offering of $4.5 billion of senior notes and $1.6 billion of preferred units to repay debt, among other purposes.
Energy Transfer Operating LP has priced $1.0 billion of its 2.900% senior notes due 2025, $1.5 billion of its 3.750% senior notes due 2030 and $2.0 billion of its 5.000% senior notes due 2050 at a price of 99.924%, 99.843% and 99.914% of their face value, respectively, according to a Jan. 7 news release.
The Energy Transfer subsidiary also priced an offering of 500,000 of its 6.750% series F fixed-rate reset cumulative redeemable perpetual preferred units and 1,100,000 of its 7.125% series G fixed-rate reset cumulative redeemable perpetual preferred units, both at $1,000 per unit.
Energy Transfer Operating plans to use the net proceeds of roughly $6.04 billion for the repayment of its outstanding debt, prepayment of senior debt and for other general partnership purposes.
The settlement of the offerings is slated to occur on Jan. 22, subject to customary closing conditions.
Citigroup Global Markets Inc., Deutsche Bank Securities Inc., MUFG Securities Americas Inc., Natixis Securities Americas LLC and TD Securities (USA) LLC are serving as joint book-running managers.
Energy Transfer's core operations include transportation, storage and terminaling assets for natural gas, crude oil, NGLs and refined products.