Energy Transfer Prices $2.7 Billion in Senior Notes Across Three Maturities

Energy Transfer LP priced $2.7 billion in senior notes Thursday, splitting the offering among three maturities and planning to use proceeds for debt refinancing and general partnership purposes.

The partnership offered $900 million of notes due in 2032 at a 5.450% interest rate, $900 million due in 2037 at 5.900% and $900 million due in 2057 at 6.550%. The notes were priced at 99.972%, 99.719% and 99.862% of face value, respectively.

Energy Transfer expects about $2.68 billion in net proceeds before offering expenses. It plans to use the funds to refinance existing debt, including commercial paper and borrowings under its revolving credit facility, and for general partnership purposes. The partnership has not specified how much will go to each use.

Energy Transfer had $68.85 billion in total consolidated debt as of Sept. 30 and was in compliance with debt covenants at quarter-end. The note sale is expected to settle Nov. 20, subject to customary closing conditions.