Energy Transfer LP entered into an underwriting agreement for a public offering of $1.75 billion in junior subordinated notes, consisting of two series due in 2057. The company expects to receive net proceeds of approximately $1.73 billion before expenses.
Key Details
- Offering Breakdown: The offering consists of $650 million of Series 2026A notes at a 6.550% initial annual interest rate and $1.1 billion of Series 2026B notes at a 6.700% initial annual interest rate.
- Use of Proceeds: Net proceeds will be used to redeem all outstanding 6.500% Series H Preferred Units, refinance existing debt including commercial paper and revolving credit facility borrowings, and for general partnership purposes.
- Timeline: The offering is expected to close on July 20, 2026. The redemption period for the Series H Preferred Units commences on August 15, 2026.