Energy Transfer Equity Announces Results of Offer of Senior Notes
OREANDA-NEWS. December 10, 2013. Energy Transfer Equity, L.P. (NYSE: ETE) announced today the expiration and final results of its previously announced tender offer (the “Tender Offer”) to purchase for cash its outstanding 7.500% Senior Notes due 2020 (the “2020 Notes”).
The terms and conditions of the Tender Offer are described in the Offer to Purchase Statement dated October 30, 2013 (as amended, the “Offer to Purchase”). As previously announced on November 14, 2013, the tender cap was increased from up to an aggregate of USD400 million principal amount to up to an aggregate of USD 600 million principal amount.
ETE has been advised by D.F. King & Co., Inc., the tender agent and information agent for the Tender Offer, that the total aggregate principal amount of Notes validly tendered at or prior to the Expiration Time and not validly withdrawn was USD 612,968,000. In accordance with the terms of the Tender Offer set forth in the Offer to Purchase, ETE will accept for purchase (and will not prorate) all of the 2020 Notes validly tendered at or prior to the Expiration Time and not validly withdrawn, representing approximately 34.05% of the outstanding 2020 Notes.
The consideration paid for each USD 1,000 principal amount of 2020 Notes validly tendered and not withdrawn prior to 5:00 p.m., New York City time, on November 13, 2013 (the “Early Tender Deadline”), will be USD 1,150, which amount includes the early tender payment of USD 50. The consideration paid for each USD,000 principal amount of 2020 Notes validly tendered and not withdrawn after the Early Tender Deadline and at or prior to the Expiration Time will be USD 1,100. In addition, holders whose 2020 Notes are purchased in the Tender Offer will receive accrued and unpaid interest on their 2020 Notes from, and including, the last interest payment date to, but excluding, the payment date. The aggregate consideration for the Notes accepted for purchase, including accrued interest, will be approximately USD 710.9 million.
ETE also completed today its previously announced public offering of USD 450.0 million in aggregate principal amount of 5.875% Senior Notes due 2024 (the “Notes Offering”) and the refinancing of its term loan credit facility and revolving credit facility. ETE will use the net proceeds from the Notes Offering, together with a portion of the borrowings under its new USD 1.0 billion term loan credit facility and new USD 600.0 million revolving credit facility, to fund the aggregate consideration for the Tender Offer.
The dealer managers for the Tender Offer were Credit Suisse Securities (USA) LLC and Goldman, Sachs & Co. D.F. King & Co., Inc. acted as tender agent and information agent in connection with the Tender Offer.