By Sheri Kasprzak
New York, April 3 - Energy Transfer Partners LP released terms on its offering of $1 billion in senior unsecured notes in two tranches.
The sale included $350 million in 8.5% senior notes (Baa3/BBB-/BBB-) due April 15, 2014 and $650 million in 9% senior notes (Baa3/BBB-/BBB-) due April 15, 2019.
The five-year notes priced at 99.996 to yield 8.5% and the 10-year notes priced at 99.996 to yield 9%.
The reoffer spread on the five-year notes was set at Treasuries plus 674.7 bps and the spread on the 10-year notes was set at Treasuries plus 624.5 bps.
Both notes include a make-whole call at Treasuries plus 50 bps.
The bookrunners were Credit Suisse Securities (USA) LLC, J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc. and RBS Securities Inc. The co-managers were Deutsche Bank Securities Inc. and BNP Paribas Securities Corp.
Proceeds will be used to fully repay debt outstanding on the company's revolving credit facility and for general partnership purposes.
Dallas-based Energy Transfer owns and operates a portfolio of energy assets, including natural gas transportation and storage operations.
| Issuer: | Energy Transfer Partners LP
|
| Issue: | Senior unsecured notes
|
| Amount: | $1 billion
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc. and RBS Securities Inc.
|
| Co-managers: | Deutsche Bank Securities Inc. and BNP Paribas Securities Corp.
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
| Pricing date: | April 2
|
| Settlement date: | April 7
|
|
|
| Five-year senior notes
|
| Amount: | $350 million
|
| Maturity: | April 15, 2014
|
| Coupon: | 8.5%
|
| Price: | 99.996
|
| Yield: | 8.5%
|
| Call: | Make-whole call at Treasuries plus 50 bps
|
| Reoffer spread: | Treasuries plus 674.7 bps
|
|
|
| 10-year notes
|
| Amount: | $650 million
|
| Maturity: | April 15, 2019
|
| Coupon: | 9%
|
| Price: | 99.996
|
| Yield: | 9%
|
| Call: | Make-whole call at Treasuries plus 50 bps
|
| Reoffer spread: | Treasuries plus 624.5 bps
|
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