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Energy Transfer Equity, L.P. Announces Pricing of $580 Million PIPE Financing and Purchase of Common Units of Energy Transfer Partners, L.P.

Energy Transfer Equity, L.P. Announces Pricing of $580 Million PIPE Financing and Purchase of Common Units of Energy Transfer Partners, L.P.

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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 private placement.

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.

Source:energytransfer
Anand Gupta Editor - EQ Int'l Media Network

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