Energy Transfer Operating gets needed consents in exchange offer, extends early tender premium

Chicago, March 11 – Energy Transfer Operating, LP extended the early consent benefit and announced early participation results of its exchange offers and consent solicitations for any and all of four series of notes issued by Energy Transfer LP for new notes with the same coupon and maturity date issued by Energy Transfer Operating, according to a company news release.

Holders who tender by the original tender expiration of 11:59 p.m. ET on March 22 will now also receive the early tender premium of $30 of new notes.

As previously reported, for each series of notes, holders will receive at total consideration of $1,000 of new Energy Transfer Operating notes for each $1,000 principal amount of old notes, inclusive of the early tender premium of $30 of new notes.

As of the early consent deadline of 5 p.m. ET on March 8, the results of existing notes tendered and consenting by the early deadline are:

• $1,129,011,000, or 95.1%. of the $1,187,032,000 of 7.5% senior notes due 2020;

• $990,743,000, or 99.1%, of the $1 billion of 4.25% senior notes due 2023;

• $1,125,880,000, or 97.9%, of the $1.15 billion of 5.875% senior notes due 2024; and

• $952.93 million, or 95.3%, of the $1 billion of 5.5% senior notes due 2027.

As previously reported, in connection with the exchange offers, Energy Transfer Operating is also soliciting consents from holders of the existing notes to amend their indentures to eliminate certain covenants, restrictive provisions and events of default.

The company has received the requisite number of consents and the existing notes will have less restrictive terms and afford reduced protections to the holders of those securities compared to those of the new notes, subject to each holder’s right to withdraw previously tendered notes.

The dealer managers are Citigroup (212 723-6106 or 800 558-3745), J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811) and TD Securities (USA) LLC (855 495-9846). The information agent is Global Bondholder Services Corp. (212 430-3774 or 866 924-2200).

Dallas-based Energy Transfer Partners owns and operates a portfolio of energy assets.

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