Energy Transfer Equity sets spread on $2.2 billion loan at Libor plus 200 bps

By Paul A. Harris

Portland, Ore., Oct. 6 - Energy Transfer Equity LP set the spread on its $2.2 billion senior secured term loan B due Feb. 2, 2024 at Libor plus 200 basis points, according to a market source.

The deal was offered at 99.75.

Commitments were due Friday.

The spread came tight to the Libor plus 200 to 225 bps talk. Price talk was par.

Morgan Stanley Senior Funding Inc. is the lead arranger on the deal.

The deal has a 0% Libor floor, and includes 101 soft call protection for six months, and maximum total leverage and minimum interest coverage covenants.

Proceeds will be used to reprice an existing term loan B down from Libor plus 275 bps with no Libor floor.

In connection with the repricing, the company plans to issue $1 billion in senior secured notes to repay a portion of the existing $2.2 billion term loan B and for general partnership purposes.

The notes offering was upsized from $750 million.

Energy Transfer is a Dallas-based midstream oil and gas company.

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