DALLAS—Energy Transfer Operating LP (formerly, Energy Transfer Partners LP, and a subsidiary of Energy Transfer LP) (ETO) Jan. 8 announced the pricing of its $750 million aggregate principal amount of 4.5% senior notes due 2024, $1.5 billion aggregate principal amount of 5.25% senior notes due 2029 and $1.75 billion aggregate principal amount of 6.25% senior notes due 2049 at a price to the public of 99.646%, 99.789% and 99.85%, respectively, of their face value.
The sale of the senior notes is expected to settle on Jan. 15, 2019, subject to the satisfaction of customary closing conditions. ETO intends to use the net proceeds of approximately $3.96 billion from this offering (i) to make an intercompany loan to Energy Transfer LP (formerly, Energy Transfer Equity LP) (NYSE: ET), which will use the proceeds therefrom to repay in full its $1.22 billion term loan due Feb. 2, 2024, (ii) to repay in full its 9.7% senior notes due March 15, 2019, its 9% senior notes due April 15, 2019 and its subsidiary’s 8.125% senior notes due June 1, 2019, (iii) to repay a portion of the borrowings under its revolving credit facility and (iv) for general partnership purposes.
Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, RBC Capital Markets, LLC and SunTrust Robinson Humphrey, Inc. are acting as joint book-running managers for the offering.
The offering of the senior notes is being made pursuant to an effective shelf registration statement and prospectus filed by ETO with the Securities and Exchange Commission. The offering of the senior notes may be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
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