Energy Transfer Equity to get $500 million facility alongside IPO

By Sara Rosenberg

New York, Jan. 26 - Energy Transfer Equity LP plans to obtain a new $500 million five-year revolving credit facility in connection with its initial public offering of common units, according to a 424A filed with the Securities and Exchange Commission Thursday.

Wachovia Bank is the administrative agent on the deal; Bank of America and Citicorp North America are co-syndication agents; BNP Paribas and The Royal Bank of Scotland are co-documentation agents; Credit Suisse, Deutsche Bank and UBS Loan Finance LLC are senior managing agents; and Fortis Capital Corp., Suntrust Bank, and Well Fargo Bank are managing agents.

The revolver will have a maximum unused fee of 50 basis points.

There is a $100 million accordion feature.

Financial covenants will include a maximum leverage ratio of 4.5:1.0 or 5.0:1.0 during a specified post-acquisition period, a maximum consolidated leverage ratio of 5.5:1.0, a minimum consolidated interest coverage ratio of 3.0:1.0 and a minimum value-to-loan ratio of 2.0:1.0.

Borrowings under the revolver, along with a portion of the proceeds from the common units IPO, will be used to repay the company's $600 million term loan in full.

Energy Transfer Equity is a Dallas-based company that acts as the general partner of Energy Transfer Partners, a propane company and operator of natural gas pipelines.

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