By Devika Patel
Knoxville, Tenn., Nov. 14 – Energy Transfer Partners, LP priced $1.5 billion of fixed-to-floating rate cumulative redeemable perpetual preferred units in two tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.
The deal priced in two tranches of $950 million 6.25% series A preferreds and $550 million 6.625% series B preferreds.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Goldman Sachs & Co., MUFG and TD Securities (USA) LLC are the bookrunners.
The dividend rate for the series A preferreds will be fixed until Feb. 15, 2023, at which time it will float at Libor plus 402.8 basis points.
The series A preferreds become redeemable on Feb. 15, 2023, at par plus accrued dividends or in whole within 120 days of a ratings event at 102 plus accrued dividends.
The dividend rate for the series B preferreds will be fixed until Feb. 15, 2028, at which time it will float at Libor plus 415.5 bps.
The series B preferreds become redeemable on Feb. 15, 2028, at par plus accrued dividends or in whole within 120 days of a ratings event at 102 plus accrued dividends.
Proceeds will be used to repay outstanding debt under Energy Transfer’s revolving credit facility and for general partnership purposes.
Energy Transfer is a natural gas midstream and intrastate transportation and storage company based in Dallas.
| Issuer: | Energy Transfer Partners, LP
|
| Securities: | Series A fixed-to-floating rate cumulative redeemable perpetual preferred units, series B fixed-to-floating rate cumulative redeemable perpetual preferred units
|
| Amount: | $1.5 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Goldman Sachs & Co., MUFG and TD Securities (USA) LLC
|
| Pricing date: | Nov. 13
|
| Settlement date: | Nov. 16
|
|
|
| Series A
|
| Amount: | $950 million, or 950,000 units
|
| Maturity: | Perpetual
|
| Dividend: | Fixed at 6.25% until Feb. 15, 2023, then floating at Libor plus 402.8 bps
|
| Price: | Par of $1,000
|
| Call options: | On or after Feb. 15, 2023 or within 120 days of a regulatory capital treatment event at par plus accrued dividends
|
|
|
| Series B
|
| Amount: | $550 million, or 550,000 units
|
| Maturity: | Perpetual
|
| Dividend: | Fixed at 6.625% until Feb. 15, 2028, then floating at Libor plus 415.5 bps
|
| Price: | Par of $1,000
|
| Call options: | On or after Feb. 15, 2028 or within 120 days of a regulatory capital treatment event at par plus accrued dividends
|
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