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Energy Transfer Equity, L.P.
ETE today announced that it has launched the syndication of a new senior secured credit facility of up to $2.30 billion. ETE intends to use the net proceeds from the senior secured credit facility, together with a portion of the proceeds from Southern Union Company's
SUG contribution of its 50% interest in Citrus Corp. to Energy Transfer Partners, L.P.
ETP in exchange for $2.0 billion, to fund the cash portion of the purchase price of its previously announced acquisition of Southern Union Company and pay related fees and expenses, including existing borrowings under ETE's revolving credit facility and for general partnership purposes.
Upon closing, the new senior secured credit facility, combined with the proceeds from the Citrus contribution, is expected to replace the previously announced $3.7 billion acquisition financing with permanent financing. The ultimate size of the senior secured credit facility is subject to the cash consideration elected by SUG shareholders in connection with the acquisition. The closing of the new senior secured credit facility is anticipated to occur during the first quarter of 2012, in conjunction with the closing of the SUG acquisition.
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