Energy Transfer Prices $3 Billion Bond Offering with Rates up to 6.30%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Bond Offering Size: Energy Transfer successfully priced a $3 billion bond offering, issuing $1 billion each of senior notes maturing in 2031, 2036, and 2056, with interest rates of 4.55%, 5.35%, and 6.30%, indicating strong market interest in its financing needs.
- Clear Use of Proceeds: The bond offering is expected to generate approximately $2.97 billion in net proceeds, primarily aimed at refinancing existing debt, including repaying commercial paper and borrowings under its revolving credit facility, thereby optimizing the company's capital structure and reducing financial costs.
- Strong Underwriting Team: BofA Securities, Deutsche Bank Securities, Mizuho, MUFG, and SMBC Nikko are acting as joint book-running managers for the senior notes offering, highlighting the market's recognition and professionalism associated with this bond issuance.
- Settlement Timeline: The bond offering is expected to settle on January 27, 2026, subject to customary closing conditions, reflecting the company's adherence to regulatory norms and transparency in capital market operations.
Analyst Views on ET
Wall Street analysts forecast ET stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ET is 22.00 USD with a low forecast of 17.00 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
9 Buy
1 Hold
0 Sell
Strong Buy
Current: 16.960
Low
17.00
Averages
22.00
High
25.00
Current: 16.960
Low
17.00
Averages
22.00
High
25.00
About ET
Energy Transfer LP owns and operates a diversified portfolios of energy assets in the United States, with more than 140,000 miles of pipeline and associated energy infrastructure. The Company’s strategic network spans 44 states with assets in all of the major United States production basins. Its core operations include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; and NGL fractionation. The Company’s segments include intrastate transportation and storage, interstate transportation and storage, midstream, NGL and refined products transportation and services, crude oil transportation and services, investment in Sunoco LP, investment in USA Compression Partners, LP (USAC), and all other. It also owns Lake Charles LNG Company, LLC, its wholly owned subsidiary, which owns an LNG import terminal and regasification facility.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
