Energy Transfer Partners enters $568M private placement agreement with Energy Transfer Equity

Energy Transfer Partners LP (NYSE: ETP) has entered into a definitive agreement with Energy Transfer Equity LP (NYSE: ETE) in connection with a private placement of common units representing limited partner interests in ETP pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. The closing of the transaction, which is scheduled to occur on January 12, 2017, is conditioned upon the closing of ETE’s previously announced $580 million private placement, or PIPE, financing transaction, under which ETE will receive gross proceeds of approximately $580 million in exchange for the issuance of 32,333,335 common units representing limited partner interests in ETE.

Upon the closing of the transaction with ETE, ETP will receive gross proceeds of approximately $568 million in exchange for the issuance to ETE of approximately 15.8 million ETP common units. The purchase price per unit is equal to the volume weighted average trading price of ETP’s common units for the 10 trading day period ending January 5, 2017. ETP intends to use the net proceeds of the transaction to repay existing indebtedness and for general partnership purposes.

The purchase of ETP common units by ETE has been approved by the boards of directors and conflicts committees of both partnerships.

Barclays and JP Morgan are acting as lead placement agents for the ETE private placement.

The purchase of ETP common units by ETE has been approved by the boards of directors and conflicts committees of both partnerships.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...