Energy Transfer ups tender cap for 7½% notes; extends offer to Nov. 29

By Susanna Moon

Chicago, Nov. 15 - Energy Transfer Equity, LP said it raised the tender cap in the offer for its $1.8 billion of outstanding 7½% senior notes due 2020 to $600 million and extended the offer until 11:59 p.m. ET on Nov. 29.

The settlement date also was pushed back until Dec. 2, according to a press release. The offer was extended from 11:59 p.m. ET on Nov. 27.

Energy Transfer said on Nov. 14 that holders had tendered $612,938,000 of the notes by 5 p.m. ET on Nov. 13, the early date, which exceeded the $400 million cap set at the beginning of the offer on Oct. 30.

The company previously said it would purchase the tendered notes on a pro rata basis.

The total payment will be $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.

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

The tender offer is subject to a financing condition.

Energy Transfer 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.

The dealer managers are 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 is 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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