Energy Transfer Equity begins tender for up to $400 million 7½% notes

By Angela McDaniels

Tacoma, Wash., Oct. 30 - Energy Transfer Equity, LP began a tender offer to purchase up to $400 million principal amount of its $1.8 billion of outstanding 7½% senior notes due 2020 from registered holders of the notes, according to a company news release.

If the principal amount of notes tendered exceeds the tender cap, the company will purchase the tendered notes on a pro rata basis.

The company is offering $1,150 per $1,000 principal amount of notes. This includes an early tender payment of $50.00 for each note tendered by the early tender time, 5 p.m. ET on Nov. 13.

Holders will also receive accrued interest up to but excluding the payment date.

The offer will end at 11:59 p.m. ET on Nov. 27.

The company also intends to refinance its $900 million senior secured term loan due March 2017 and is finalizing a new five-year revolving credit facility for up to $600 million.

The proceeds from a possible new issuance of senior secured notes and/or a new term loan will be used to satisfy any proceeds required for a successful tender of the notes.

The dealer managers are Credit Suisse Securities (USA) LLC (800 820 1653 or 212 325-2476) and Goldman Sachs & Co. (800 828-3182 or 212 902-6941) The tender agent and information agent is D.F. King & Co., Inc. (212 269-5550 for banks and brokers or 800 488-8035 for all others or energytransfer@dfking.com).

Energy Transfer Equity is based in Dallas. The Energy Transfer family of companies owns natural gas, natural gas liquids, refined product, and crude oil pipelines.

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