Dakota Access LLC subsidiary Midwest Connector Capital Co. LLC completed its offering of 3.625% senior notes due 2022, 3.900% senior notes due 2024 and 4.625% senior notes due 2029, according to a March 15 SEC filing.
Net proceeds from the offering were used to extend separate loans to Dakota Access. Each loan has interest at a rate equal to that of the notes with an applicable premium. Principal, interest and premium on such loans will be due at the same time and can be paid in amounts equal to those of the notes.
After Dakota Access received the loans, the company used a portion of its proceeds to grant loans to Energy Transfer Crude Oil Co. LLC. Each Energy Transfer Crude Oil loan carries interest at a rate equal to that of a Dakota Access loan. Principal, interest and premium on Energy Transfer Crude Oil loans will be due at the same time and can be paid in amounts equal to about 7% of those of the Dakota Access loans.
Proceeds from both Dakota Access and Energy Transfer Crude Oil's loans were allocated to the repayment of the companies' credit agreement of about $2.4 billion.
U.S. Bank NA is the trustee for the notes.
Dakota Access is developing an underground crude oil pipeline running from the Bakken/Three Forks play in North Dakota to a terminus in Illinois. Energy Transfer Crude Oil owns and operates natural gas pipelines and offers natural gas transportation services. Both are subsidiaries of Energy Transfer LP.