By Wendy Van Sickle
Columbus, Ohio, July 16 – Energy Transfer Partners, LP priced $400 million of series D fixed-to-floating rate cumulative redeemable perpetual preferred units with a 7.625% initial dividend on Monday.
The issuer sold 16 million units at par of $25.00, according to a news release and an FWP filing with the Securities and Exchange Commission.
There is a greenshoe for an additional $60 million, or 2.4 million units, of the preferreds.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC and Wells Fargo Securities LLC are the joint bookrunners.
Starting on Aug. 15, 2023, the dividend will switch to a floating rate of Libor plus 473.8 basis points.
The preferreds are callable beginning on Aug. 15, 2023 at par.
Energy Transfer Partners plans to use the proceeds to repay amounts outstanding under its revolving credit facility and for general partnership purposes.
The company intends to list the units on the New York Stock Exchange under the ticker “ETPPrD.”
Energy Transfer Partners is a Dallas-based natural gas and propane transportation company.
| Issuer: | Energy Transfer Partners, LP
|
| Issue: | Series D fixed-to-floating rate cumulative redeemable perpetual preferred units
|
| Amount: | $400 million, or 16 million units
|
| Greenshoe: | $60 million, or 2.4 million units
|
| Maturity: | Perpetual
|
| Dividend: | 7.625%, from Aug. 15, 2023 floating at Libor plus 473.8 bps
|
| Price: | Par of $25.00
|
| Call: | Starting Aug. 15, 2023 at par
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC and Wells Fargo Securities LLC
|
| Ratings: | Moody’s: Ba2
|
| Fitch: BB
|
| S&P: BB
|
| Pricing date: | July 16
|
| Settlement date: | July 23
|
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