Energy Transfer takes in $4.21 billion tenders in exchange offer

By Wendy Van Sickle

Columbus, Ohio, March 25 – Energy Transfer Operating, LP said about $4.21 billion, or 97%, of the outstanding notes covered by the exchange offers and consent solicitations for any and all of four series of notes issued by Energy Transfer LP were tendered for exchange under the offer.

The company had offered to exchange the existing notes for new notes with the same coupon and maturity date issued by Energy Transfer Operating.

Holders who tendered by the expiration of 11:59 p.m. ET on March 22 will receive the total consideration, after the company previously pushed back the deadline to receive the early tender premium of $30 of new notes.

For each series of notes, holders were to receive a total consideration of $1,000 of new Energy Transfer Operating notes for each $1,000 principal amount of old notes.

The offer opened on Feb. 25, and settlement was expected to occur on March 25.

As of the final deadline, the results of existing notes tendered and consenting by the early deadline are:

• $1,128,540,000, or 95.1% of the $1,187,032,000 of 7.5% senior notes due 2020;

• $993,153,000, or 99.3%, of the $1 billion of 4.25% senior notes due 2023;

• $1,127,484,000, or 98%, of the $1.15 billion of 5.875% senior notes due 2024; and

• $955,955,000, or 95.6%, 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 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, as previously reported.

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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