Energy Transfer LP (“ET”) has priced an underwritten public offering (the “offering”) of 900,000 of its 6.500% Series H Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units (the “Series H Preferred Units”) at a price of $1,000.00 per unit, resulting in total proceeds of $900 million, before deducting underwriting discounts and offering expenses payable by ET.
Distributions on the Series H Preferred Units, which will be paid semi-annually on May 15 and November 15 each year beginning November 15, 2021, will accrue and be cumulative from and including the date of original issue to, but excluding, November 15, 2026, at a rate of 6.500% per annum of the stated liquidation preference of $1,000.00. On and after November 15, 2026, distributions on the Series H Preferred Units will accumulate at a percentage of the $1,000.00 liquidation preference equal to an interest rate equal to the Five-year U.S. Treasury Rate (as described in the prospectus supplement relating to the offering), plus a spread of 5.694% per annum.
The Series H Preferred Units are redeemable, in whole or in part, on one or more occasions, at ET’s option during any Redemption Period (as described in the prospectus supplement relating to the offering) at a redemption price of $1,000.00 per Series H Preferred Unit, plus an amount equal to all accumulated and unpaid distributions thereon to, but excluding, the date of redemption.
The offering of the Series H Preferred Units is expected to close on or about June 15, 2021, subject to the satisfaction of customary closing conditions.
ET intends to use the net proceeds from the offering to repay certain of its outstanding indebtedness and for general partnership purposes.
J.P. Morgan, Mizuho Securities, PNC Capital Markets LLC and Truist Securities are acting as joint book-running managers of the offering. When available, copies of the prospectus supplement and prospectus relating to the offering may be obtained by sending a request to:
