Energy Transfer completes tender offer for 7½% notes due 2020

By Toni Weeks

San Luis Obispo, Calif., Dec. 2 - Energy Transfer Equity, LP said it took in tenders for $612,968,000, or about 34.05%, of its $1.8 billion of outstanding 7½% senior notes due 2020 by 11:59 p.m. ET on Nov. 29, the deadline for the company's tender offer. The amount tendered is $30,000 more than the $612,938,000 tendered by 5 p.m. ET on Nov. 13, the early tender date.

The company began the tender offer on Oct. 30, saying it would accept up to $400 million of the notes. Energy transfer increased the cap to $600 million and extended the deadline from Nov. 27, according to a previous press release. It also pushed back the settlement date to Dec. 2.

Although the amount tendered by the deadline exceeds the tender cap, Energy Transfer will accept for purchase and will not prorate all of the notes tendered by the expiration time, according to a press release.

The total payment is $1,150 per $1,000 principal amount of notes tendered by the early deadline, which includes an early premium of $50.00 per $1,000 of notes. For notes tendered after the early deadline, the company will pay $1,100 per $1,000 of notes.

Holders will also receive accrued interest up to but excluding the payment date.

The tender offer is subject to a financing condition, which has been satisfied. The company priced $450 million of non-callable 10-year senior notes at par to yield 5 7/8% on Nov. 14 and also upsized its six-year first-lien term loan to $1 billion from $900 million the same day. Both transactions settled on Dec. 2, the release noted.

The dealer managers were Credit Suisse Securities (USA) LLC (800 820-1653 or 212 325-2476) and Goldman Sachs & Co. (800 828-3182 or 212 902-6941). The tender agent and information agent was D.F. King & Co., Inc. (212 269-5550 for banks and brokers or 800 488-8035 for all others or energytransfer@dfking.com).

Energy Transfer Equity is based in Dallas. The Energy Transfer family of companies owns natural gas, natural gas liquids, refined product and crude oil pipelines.

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