Moody's gives Energy Transfer notes, loan Ba2

Moody's Investors Service said it assigned a Ba2 rating to Energy Transfer Equity, LP's proposed offering of $400 million senior secured notes due 2024 and a Ba2 rating to Energy Transfer's new $1 billion senior secured term loan due 2019.

The Ba2 corporate family rating, Ba2-PD probability of default rating, SGL-3 speculative grade liquidity rating and stable outlook were not affected by this action.

Energy Transfer intends to use the proceeds from the new notes to fund its previously announced tender offer for up to $400 million of its 7½% senior secured notes due 2020, together with proceeds from its new $1 billion senior secured term loan. The new secured term loan will replace its existing $900 million senior secured term loan.

The new notes and term loan along with Energy Transfer's existing revolving credit facility will be secured on a first priority, pari passu basis by a lien on substantially all of Energy Transfer's and its subsidiaries' tangible and intangible assets, comprised principally its equity interests in its subsidiaries.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.