OREANDA-NEWS. November 05, 2013. Energy Transfer Equity, L.P. (NYSE: ETE) (the "Partnership") announced today that it has commenced a tender offer (the "Tender Offer") to purchase for cash up to an aggregate of USD 400 million principal amount of its outstanding 7.500% Senior Notes due 2020 (the "Notes") from registered holders of the Notes (the "Holders").

There is currently USD 1.8 billion in aggregate principal amount of the Notes outstanding. The Tender Offer is being made pursuant to, and subject to the terms and conditions in, the Offer to Purchase. The principal amount of Notes purchased in the Tender Offer is currently capped at USD 400 million (the "Tender Cap"). Subject to the satisfaction of the financing and other conditions, and subject to the Tender Cap, the Partnership intends to accept for purchase all Notes validly tendered at or prior to the Expiration Time (as defined below). In the event that the principal amount of Notes validly tendered in the Tender Offer exceeds the Tender Cap, the Partnership will purchase the tendered notes on a pro rata basis, as set forth in the Offer to Purchase.

Subject to the terms and conditions in the Offer to Purchase, Holders who validly tender their Notes before 5:00 p.m., New York City time, on November 13, 2013 (the "Early Tender Deadline"), will receive the Total Consideration, which includes an early tender payment (the "Early Tender Payment") of USD 50.00 per USD 1,000 principal amount of Notes (which is payable in respect of Notes tendered at or prior to the Early Tender Deadline and accepted for purchase). Holders who validly tender their Notes after the Early Tender Deadline and at or prior to the Expiration Time (as defined below) that are accepted for purchase will be eligible to receive only the Tender Offer Consideration, and not the Early Tender Payment. Validly tendered Notes may be validly withdrawn at any time at or prior to the withdrawal deadline, which is 5:00 p.m., New York City time, on November 13, 2013, unless extended or earlier terminated.

The Tender Offer will expire at 11:59 p.m., New York City time, on November 27, 2013 (the "Expiration Time"), unless extended or earlier terminated. Holders who validly tender their Notes and whose Notes are accepted for payment will receive accrued and unpaid interest from the last interest payment date to, but excluding, the payment date. The payment date is expected to be the second business day following the Expiration Time. 

In conjunction with the Tender Offer, the Partnership intends to launch a comprehensive refinancing of its existing debt. To that end, the Partnership intends to refinance its current USD 900 million senior secured term loan due March 2017 and is finalizing a new five-year revolving credit facility for up to USD 600 million. Proceeds from a possible new issuance of senior secured notes and/or a new term loan will be used to satisfy any proceeds required for a successful tender of the Notes. There can be no assurance that the Partnership will successfully refinance its existing term loan or raise adequate funds for the tender from any intended new issuance of senior secured notes or any term loan financing.