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Energy Transfer Equity to launch $500 million term loan on Monday
By Sara Rosenberg
New York, Feb. 20 – Energy Transfer Equity LP is scheduled to hold a lender call at 11:30 a.m. ET on Monday to launch a $500 million first-lien term loan due Dec. 2, 2019, according to a market source.
Credit Suisse Securities (USA) LLC, Bank of Tokyo-Mitsubishi, BBVA Compass, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., DNB Bank, Mizuho Securities USA Inc., Sumitomo Mitsui Banking Corp., Intesa Sanpaolo, Natixis Securities North America Inc., ING Capital LLC, ABN Amro Inc., SunTrust Robinson Humphrey Inc., PNC Capital Markets LLC and HSBC Securities (USA) Inc. are the leads on the deal.
Covenants include maximum leverage and minimum interest coverage ratios.
Commitments are due on March 2, the source added.
Expected term loan ratings are Ba2/BB.
Proceeds will be used to help fund the transfer of 30.8 million Energy Transfer Partners LP common units, Energy Transfer Equity’s 45% interest in the Dakota Access Pipeline and Energy Transfer Crude Oil Pipeline (the Bakken pipeline project), and $879 million in cash (less amounts funded prior to closing for capital expenditures for the Bakken pipeline project) in exchange for 30.8 million newly issued class H units of Energy Transfer Partners.
The new class H units, when combined with the 50.2 million previously issued class H units, generally entitle Energy Transfer Equity to receive 90.05% of the cash distributions and other economic attributes of the general partner interest and IDRs of Sunoco Logistics.
Closing is expected in March.
Energy Transfer is a Dallas-based midstream oil and gas company.
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