Energy Transfer LP Prices $4.9 Billion in Senior Notes

Energy Transfer LP (NYSE: ET) has just announced the pricing of its concurrent offerings of $1.0 billion aggregate principal amount of 5.250% senior notes due 2029, $1.25 billion aggregate principal amount of 5.600% senior notes due 2034, and $1.25 billion aggregate principal amount of 6.050% senior notes due 2054. In addition, the company priced $400 million aggregate principal amount of 7.125% fixed-to-fixed reset rate junior subordinated notes due 2054.

The senior notes were priced at 99.797%, 99.741%, and 99.461% of their face value, while the junior subordinated notes were priced at 100.000% of their face value. The net proceeds from the senior notes offering are expected to be approximately $3.463 billion before offering expenses, and the net proceeds from the junior subordinated notes offering are expected to be approximately $396 million before offering expenses.

Energy Transfer intends to use the net proceeds to fund all or a portion of the cash consideration for its previously announced acquisition of WTG Midstream Holdings LLC, refinance existing indebtedness, including borrowings under its revolving credit facility, redeem all of its outstanding Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units, and for general partnership purposes.

In connection with the pricing of the concurrent offerings, Energy Transfer issued a notice to redeem all of its outstanding Series A Preferred Units at a redemption price per unit of $1,009.87899, which includes unpaid distributions up to but excluding June 21, 2024.

Barclays Capital Inc., J.P. Morgan Securities LLC, MUFG Securities Americas Inc., TD Securities (USA) LLC, and Wells Fargo Securities, LLC are acting as joint book-running managers for the senior notes offering and the junior subordinated notes offering.

The concurrent offerings are being made pursuant to an effective shelf registration statement and prospectus filed by Energy Transfer with the Securities and Exchange Commission ("SEC").

Energy Transfer LP owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with more than 125,000 miles of pipeline and associated energy infrastructure, spanning 44 states with assets in all of the major U.S. production basins. Additionally, the company owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights, and approximately 21% of the outstanding common units of Sunoco LP (NYSE: SUN), and the general partner interests and approximately 39% of the outstanding common units of USA Compression Partners, LP (NYSE: USAC). Following these announcements, the company's shares moved -0.6%, and are now trading at a price of $15.61. Check out the company's full 8-K submission here.

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