Energy Transfer Partners, L.P. Announces Private Placement of $568 Million of Common Units with Energy Transfer Equity, L.P.

Energy Transfer Partners, L.P. (NYSE: ETP) today announced that it has entered into a definitive agreement with Energy Transfer Equity, L.P. (NYSE: ETE) in connection with a private placement of common units representing limited partner interests in ETP pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. The closing of the transaction, which is scheduled to occur on January 12, 2017, is conditioned upon the closing of ETE’s previously announced $580 million private placement, or PIPE, financing transaction.

Upon the closing of the transaction with ETE, ETP will receive gross proceeds of approximately $568 million in exchange for the issuance to ETE of approximately 15.8 million ETP common units. 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. ETP intends to use the net proceeds of the transaction 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