Energy Transfer to pay down $1.22 billion term loan, revolver draws

By Susanna Moon

Chicago, Jan. 8 – Energy Transfer Operating LP plans to repay its $1.22 billion term loan due Feb. 2, 2024 and some of the borrowings under its revolving credit facility using proceeds of senior notes.

Energy also plans to use the note proceeds to repay its $400 million 9.7% senior notes due March 15, 2019, $450 million 9% senior notes due April 15, 2019 and its subsidiary’s $150 million 8.125% senior notes due June 1, 2019 as well as for general partnership purposes, according to a 424B3 filing with the Securities and Exchange Commission.

The notes will be issued in four tranches due 2021, 2024, 2029 and 2049.

As of Dec. 31, the company had outstanding borrowings of $3.69 billion under its revolving credit facility, including $2.34 billion of commercial paper, and there were $65 million of letters of credit outstanding.

The weighted average interest rate on the total amount outstanding as of Dec. 31 was 3.57%.

The revolving credit facility matures on Dec. 1, 2023.

Borrowings under the revolver were used to fund growth capital expenditures, for working capital requirements and for an intercompany loan at the closing of a merger, the filing noted.

Energy Transfer is a natural gas midstream and intrastate transportation and storage company based in Dallas.

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