By Cristal Cody
Tupelo, Miss., April 17 – Energy Transfer Operating, LP priced $700 million of $25-par series E fixed-to-floating rate cumulative redeemable perpetual preferred units with a 7.6% dividend, according to an FWP filing with the Securities and Exchange Commission on Wednesday.
The deal included 28 million units (Ba2/BB/BB), along with a greenshoe of $105 million, or 4.2 million shares.
The preferreds will reset May 15, 2024 from a fixed rate to a floating rate of Libor plus 516.1 basis points.
BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC and Wells Fargo Securities LLC were the bookrunners.
The company plans to apply to list the units on the New York Stock Exchange under the symbol “ETPprE”.
Proceeds will be used to purchase additional series E preferred units, to repay a portion of the borrowings under the company’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 Operating LP
|
| Amount: | $700 million, 28 million shares
|
| Greenshoe: | $105 million, or 4.2 million shares
|
| Description: | Fixed-to-floating rate cumulative redeemable preferred units
|
| Maturity: | Perpetual
|
| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC and Wells Fargo Securities LLC
|
| Dividend: | 7.6%; resets May 15, 2024 to floating rate of Libor plus 516.1 bps
|
| Price: | $25.00 per share
|
| Call feature: | On or after May 15, 2024 at par
|
| Trade date: | April 17
|
| Settlement date: | April 25
|
| Ratings: | Moody’s: Ba2
|
| S&P: BB
|
| Fitch: BB
|
| Distribution: | SEC registered
|
| Listing: | NYSE: ETPPrE
|
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