Published on 1/8/2020 in the Prospect News Investment Grade Daily.
New Issue: Energy Transfer details $4.5 billion sale of notes in three tranches
By Devika Patel
Knoxville, Tenn., Jan. 8 – Energy Transfer Operating, LP priced $4.5 billion of guaranteed senior notes (Baa3/BBB-/BBB-) in three tranches on Tuesday, according to new details of the issuance in an FWP filed with the Securities and Exchange Commission.
A $1 billion tranche of 2.9% notes due May 15, 2025 priced at a spread of Treasuries plus 130 basis points. These notes priced at 99.924 to yield 2.916%.
Energy Transfer sold $1.5 billion of 3.75% notes due May 15, 2030 at a 195 bps over Treasuries spread. These notes priced at 99.843 to yield 3.769%.
In the final tranche, $2 billion of 5% notes due May 15, 2050 priced at a spread of 270 bps over Treasuries. These notes priced at 99.914 to yield 5.006%.
BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.
The notes are guaranteed by Sunoco Logistics Partners Operations LP.
Energy Transfer is a natural gas midstream and intrastate transportation and storage company based in Dallas.
| Issuer: | Energy Transfer Operating, LP
|
| Guarantor: | Sunoco Logistics Partners Operations LP
|
| Amount: | $4.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., MUFG, Natixis Securities Americas LLC, TD Securities (USA) LLC, Barclays, BBVA Securities Inc., BMO Capital Markets Corp., BofA Securities, Inc., CIBC World Markets Corp., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Co-manager: | Fifth Third Securities, Inc.
|
| Trade date: | Jan. 7
|
| Settlement date: | Jan. 22
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| 2025 notes
|
| Amount: | $1 billion
|
| Maturity: | May 15, 2025
|
| Coupon: | 2.9%
|
| Price: | 99.924
|
| Yield: | 2.916%
|
| Spread: | Treasuries plus 130 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until April 15, 2025, then a par call
|
|
|
| 2030 notes
|
| Amount: | $1.5 billion
|
| Maturity: | May 15, 2030
|
| Coupon: | 3.75%
|
| Price: | 99.843
|
| Yield: | 3.769%
|
| Spread: | Treasuries plus 195 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until Feb. 15, 2030, then a par call
|
|
|
| 2050 notes
|
| Amount: | $2 billion
|
| Maturity: | May 15, 2050
|
| Coupon: | 5%
|
| Price: | 99.914
|
| Yield: | 5.006%
|
| Spread: | Treasuries plus 270 bps
|
| Call: | Make-whole call at Treasuries plus 40 bps until Nov. 15, 2049, then a par call
|
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