ETP’s first deal since 2013
Energy Transfer Partners (ticker: ETP) announced the pricing of $3.0 billion in senior notes this week. The company announced the pricing of $650 million aggregate principal amount of its 2.50% senior notes due 2018, $350 million aggregate principal amount of its 4.150% senior notes due 2020, $1.0 billion aggregate principal amount of its 4.750% senior notes due 2026, and $1.0 billion aggregate principal amount of its 6.125% senior notes due 2045, at a price to the public of 99.946%, 103.113% (plus accrued interest from April 1, 2015), 99.275% and 99.619%, respectively, of their face value, according to a company press release.
The sale of the senior notes is expected to settle on June 23, 2015. ETOP intends to use the approximately $2.98 billion in proceeds from the offering to repay borrowings outstanding under the company’s revolving credit facility, to fund growth capital expenditures and for general partnership purposes.
The last time Energy Transfer Partners made an offering was in March 2013 when the company offered 12 million units in order to pay off debt on its revolving credit facility and for general partnership purposes.
In EnerCom’s MLP Weekly, ETP has an above average yield at 7.4% compared to a group median of 6.7%. The company has a slightly below average dividend coverage ratio with of 0.6x, compared to a group median of 0.7x.
Energy Transfer Partners has approximately 33,000 miles of natural gas pipelines, 154 Bcf of storage capacity, and 29 natural gas storage facilities. The company also has 2,300 miles of NGL transportation pipeline, 5,400 miles of crude oil and refined product pipelines and approximately 5,000 retail gas locations through its subsidiary Sunoco Logistics.
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