Energy Transfer Said to Set Rate on $2.25 Billion Term Loan
February 23, 2012, 8:05 PM ESTBy Michael Amato
Feb. 23 (Bloomberg) -- Energy Transfer Equity LP, set the interest rate on a $2.25 billion term loan it’s seeking to fund its purchase of Southern Union Co., according to a person with knowledge of the transaction.
The debt, due in five years, will pay interest at 3.5 percentage points more than the London interbank offered rate, said the person, who declined to be identified because the terms are private. Libor, a rate banks say they can borrow in dollars from each other, will have a 1 percent floor.
ETE is proposing to sell the loan at 98.5 cents on the dollar, the person said, reducing proceeds for the company and boosting the yield to investors.
To contact the reporter on this story: Michael Amato in New York at mamato3@bloomberg.net
To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net
