trending Market Intelligence /marketintelligence/en/news-insights/trending/We7pe-_XQLBviYf1fGzJww2 content esgSubNav
Log in to other products

 /


Looking for more?

Contact Us
In This List

Energy Transfer Equity enters $1.5B credit agreement to fund transactions

Blog

Highlighting the Top Regional Aftermarket Research Brokers by Sector Coverage

Video

COVID-19 Impact & Recovery: Energy Outlook for H2 2021

Blog

Corporate renewables market flourished in 2020 despite pandemic

Blog

Corporate Credit Risk Trends in Developing Markets: A Loss Given Default (LGD) Perspective


Energy Transfer Equity enters $1.5B credit agreement to fund transactions

Energy Transfer Equity LP entered into a $1.5 billion revolver credit agreement with Credit Suisse AG, Cayman Islands Branch and other lenders, according to a Form 8-K filed March 30.

The revolver has a maturity date of March 24, 2022, with an option to extend the term for up to a total of two years. Subject for approval, ETE may increase the credit line by up to $500 million by requesting one or more of the current lenders to increase their commitments and/or inviting new lenders to the agreement.

Pursuant to the agreement, letters of credit may be issued at the request of ETE, as long as the total credit used does not exceed $150 million.

ETE's obligations are secured by a lien on all of the partnerships, and certain of its subsidiaries' tangible and intangible assets, including about 18.4 million Energy Transfer Partners LP common units and 81 million Energy Transfer Partners LP class H units owned by ETE. A 100% equity interest in Energy Transfer Partners GP LP and Energy Transfer Partners LLC is also included, through which the ETE indirectly holds all outstanding general partnership interests and IDRs in Sunoco Logistics Partners LP following the recent merger.

The partnership borrowed about $869.2 million at the closing of the agreement. It was used to refinance amounts outstanding under ETE's Dec. 2013 credit agreement, which was terminated on March 24. ETE plans to use proceeds of the new loans to fund transaction costs for loan documents, refinancing, the ETP merger and the SUG Holdco merger. Proceeds will also go to working capital, capital expenditures and lawful partnership purposes including acquisition payments, restricted payments and payments needed for the credit agreement.

Credit Suisse Securities (USA) LLC, Merrill Lynch Pierce Fenner & Smith Inc., The Bank of Tokyo-Mitsubishi UFJ Ltd., Barclays Bank PLC, Citigroup Global Markets Inc., BBVA Compass, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, JPMorgan Chase Bank, NA, Mizuho Bank Ltd., Morgan Stanley Senior Funding Inc., Natixis, New York Branch, RBC Capital Markets LLC, Sumitomo Mitsui Banking Corp., TD Securities (USA), UBS Securities LLC, Fifth Third Bank and Bank of Nova Scotia are acting joint lead arrangers and joint bookrunners.