Moody’s: Energy Transfer Equity notes Ba2

Moody's Investors Service said it assigned a Ba2 rating to Energy Transfer Equity, LP's (ETE) proposed offering of $750 million senior secured notes due 2023.

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

Proceeds will be used to repay a portion of Energy Transfer’s $2.2 billion term loan due Feb. 2, 2024.

The notes will be secured by the same collateral that secures Energy Transfer’s existing senior secured notes, a first-priority lien on substantially all of Energy Transfer’s tangible and intangible assets, comprised principally of its equity interests in its subsidiaries, and will rank pari passu with Energy Transfer’s revolving credit facility and its term loan facility.

"Moody's views the notes issue as an ongoing exercise in liability management, somewhat enhancing ETE's financial flexibility," Moody's vice president Andrew Brooks said in a news release.

"The proposed notes issue will have no material impact on ETE's debt leverage, either on a stand-alone or fully consolidated basis."

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