Nearly $6 billion in notes are being offered by Dallas-based Energy Transfer Operating LP as it attempts to cover its debts. The offering includes $4.5 billion in senior notes and $1.6 billion of preferred units.
The offering includes $1 billion in 2.900% senior notes due 2025, $1.5 billion in 3.750% senior notes due 2030 and $2 billion in 5.000% senior notes due 2050. The notes are offered at a price to the public of 99.924%, 99.843% and 99.914% respectively of their face value.
ETO also announced that it has priced an underwritten public offering of 500,000 of its 6.750% Series F Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units (the “Series F Preferred Units”) at a price of $1,000 per unit, and 1,100,000 of its 7.125% Series G Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units (the “Series G Preferred Units,” and together with the Series F Preferred Units, the “preferred units”) at a price of $1,000 per unit.
Each of the offerings is expected to settle on January 22, 2020, subject to the satisfaction of customary closing conditions. ETO intends to use the aggregate net proceeds of approximately $6.04 billion (before offering expenses) from both of the offerings described herein to repay certain of its outstanding indebtedness, including prepayment of certain senior indebtedness, and for general partnership purposes.
Citigroup Global Markets Inc., Deutsche Bank Securities Inc., MUFG Securities Americas Inc., Natixis Securities Americas LLC and TD Securities (USA) LLC are acting as joint book-running managers for both of the offerings.