Energy Transfer Equity, L.P. completed a private offering of convertible shares to some of its investors in order to help pay for its proposed purchase of rival pipeline company, Williams Companies.
According to the Form 8-K filed with the federal Securities and Exchange Commission on Wednesday, Dallas-based Energy Transfer Equity says shareholders including CEO Kelcy Warren holding more than 329 million of its units elected to receive convertible units in exchange for agreeing to forego some of their distributions for up to nine quarters.
The Motley Fool indicated that Tulsa-based Williams Companies’ stock price was down 18% last month as the midstream company’s merger partner reportedly was getting cold feet. The deal continued to move forward, with Williams’ board of directors affirming its commitment to the transaction before the month came to an end.
