Energy Transfer announced the pricing of a dual-tranche public offering of junior subordinated notes due 2057, raising an aggregate principal amount of $1.75 billion. The offering is split into $650 million of series 2026A notes with an initial annual interest rate of 6.550% and $1.1 billion of series 2026B notes with an initial annual interest rate of 6.700%, both priced at 100% of face value. The offering is expected to settle on July 20, 2026, generating net proceeds of approximately $1.73 billion. The company plans to use the funds to redeem all outstanding 6.500% Series H Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units during their redemption window starting August 15, 2026, with remaining proceeds allocated to refinancing existing indebtedness, including repayment of commercial paper and borrowings under its revolving credit facility, and for general partnership purposes.
Energy Transfer LPIssuing $1.75B in junior subordinated notes increases debt and interest expense, diluting existing equity.
Energy Transfer Partners L.PIssuing $1.75B in junior subordinated notes increases debt and interest expense, diluting existing equity.