DALLAS--(BUSINESS WIRE)--Jan. 9, 2017--
Energy Transfer Equity, L.P. (NYSE: ETE) today announced that it has
entered into definitive agreements with certain accredited investors in
connection with a private placement, or PIPE, financing transaction
pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended.
Upon the closing of the transaction, ETE will receive gross proceeds of
approximately $580 million in exchange for the issuance to such
investors of 32,222,225 common units representing limited partner
interests in ETE.
The closing of the transaction, which is subject to customary closing
conditions, is scheduled to occur on January 12, 2017, unless otherwise
agreed to by the parties.
Barclays and J.P. Morgan are acting as lead placement agents for the ETE
ETE intends to use the net proceeds of the PIPE transaction to purchase
approximately 15.8 million newly issued common units representing
limited partner interests in Energy Transfer Partners, L.P. (NYSE: ETP)
pursuant to a purchase agreement dated January 6, 2017. The ETP units
will be sold to ETE in a private placement pursuant to Section 4(a)(2)
of the Securities Act, as amended. Upon closing, ETP will receive gross
proceeds of approximately $568 million. 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. The closing of the
ETP unit purchase is also scheduled to occur on January 12, 2017, unless
otherwise agreed to by the parties. ETP intends to use the net proceeds
from the sale of its common units 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.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities, nor shall there be any
sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such jurisdiction.
The securities to be sold in the private placement have not been
registered under the Securities Act of 1933, as amended, or state
securities laws and may not be offered or sold in the United States
absent registration with the Securities and Exchange Commission or an
applicable exemption from such registration requirements.
Energy Transfer Equity, L.P. (NYSE: ETE) is a master
limited partnership that owns the general partner and 100% of the
incentive distribution rights (IDRs) of Energy Transfer Partners,
L.P. (NYSE: ETP) and Sunoco LP (NYSE: SUN). ETE also owns approximately
2.6 million ETP common units and approximately 81.0 million ETP Class H
Units, which track 90% of the underlying economics of the general
partner interest and IDRs of Sunoco Logistics Partners L.P. (NYSE: SXL).
On a consolidated basis, ETE’s family of companies owns and operates
approximately 71,000 miles of natural gas, natural gas liquids, refined
products, and crude oil pipelines. For more information, visit
the Energy Transfer Equity, L.P. website at www.energytransfer.com.
Energy Transfer Partners, L.P. (NYSE: ETP) is a
master limited partnership that owns and operates one of the largest and
most diversified portfolios of energy assets in the United States. ETP’s
subsidiaries include Panhandle Eastern Pipe Line Company, LP (the
successor of Southern Union Company) and Lone Star NGL LLC, which owns
and operates natural gas liquids storage, fractionation and
transportation assets. In total, ETP currently owns and operates more
than 62,500 miles of natural gas and natural gas liquids pipelines. ETP
also owns the general partner, 100% of the incentive distribution
rights, and approximately 67.1 million common units of Sunoco Logistics
Partners L.P. (NYSE: SXL), which operates a geographically diverse
portfolio of pipelines, terminalling and acquisition and marketing
assets. ETP recently acquired the general partner, 100% of the incentive
distribution rights, and an approximate 65% limited partnership interest
in PennTex Midstream Partners, LP (Nasdaq: PTXP), which is a
growth-oriented master limited partnership that provides natural gas
gathering and processing and residue gas and natural gas liquids
transportation services to producers in northern Louisiana. ETP’s
general partner is owned by Energy Transfer Equity, L.P. (NYSE: ETE).
For more information, visit the Energy Transfer Partners, L.P. website
This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. Such forward-looking statements are subject to a
variety of known and unknown risks, uncertainties, and other factors
that are difficult to predict and many of which are beyond management’s
control. An extensive list of factors that can affect future results are
discussed in ETE’s Annual Reports on Form 10-K and other documents filed
from time to time with the Securities and Exchange Commission. ETE
undertakes no obligation to update or revise any forward-looking
statement to reflect new information or events.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170109005393/en/
Source: Energy Transfer Equity, L.P.
Lyndsay Hannah or Brent
Vicki Granado, 214-599-8785