Energy Transfer Partners Raising Cash (ETP)

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Energy Transfer Partners, L.P. (NYSE:ETP) is raising cash.  The company is offering 5,000,000 common units that represent limited partner interests rather than common shares.   

The net proceeds from this sale will be used to repay debt from its revolving credit facility, and the company expects to use some of the funds to finance capital expenditures and other growth projects.

Joint book-runners in the deal are listed as Credit Suisse, Citi,Morgan Stanley, UBS, and Wachovia Capital Markets.  Barclays Capital,Deutsche Bank Securities, Raymond James, and RBC Capital Markets areall listed as co-managers of the deal.  The underwriters were given an option to purchase up to an additional 750,000 common units.

Energy Transfer Partners L.P. closed up 0.6% at $35.11 today, butshares are down almost $1.00 in after-hours trading on worries about the addeddilution.  This would represent about $175million in capital raised, and the company’s market cap is roughly $5.3 billion.

Jon C. Ogg
January 21, 2009