Energy Transfer announces offering of $2 billion in notes

Dallas-based Energy Transfer LP just announced a whopping $2 billion in notes.

Energy Transfer, with a major Oklahoma City office, is offering $1.2 billion in Series 2025A junior subordinated notes due 2056. It is also offering $800,000,000 aggregate principal amount of Series 2025 junior notes due 2056. The offered prices to the public are at 100% of their face value.

Initially, the Series 2025A notes will bear interest at an annual rate of 6.500% and the Series 2025B notes will bear interest at an annual rate of 6.750%.

The sale of the junior subordinated notes is expected to settle on August 25, 2025, subject to the satisfaction of customary closing conditions. Energy Transfer intends to use the net proceeds of approximately $1,980,000,000 from the junior subordinated notes offering to repay borrowings under its revolving credit facility and for general partnership purposes.

J.P. Morgan Securities LLC, PNC Capital Markets LLC, TD Securities LLC, Truist Securities, Inc., and Wells Fargo Securities, LLC are acting as joint book-running managers for the junior subordinated notes offering. The offering of the junior subordinated notes is being made pursuant to an effective shelf registration statement and prospectus filed by Energy Transfer with the Securities and Exchange Commission (“SEC”). The offering of the junior subordinated notes may be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended, copies of which may be obtained from the following addresses: