Energy Transfer Equity L.P. $500 Million Term Loan Rated 'BB' (Recovery Rating: '4')

NEW YORK (Standard&Poor's) Feb. 23, 2015--Standard&Poor's Ratings Services said today it assigned its 'BB' issue-level rating and '4' recovery rating to Energy Transfer Equity L.P.'s (ETE) $500 million senior secured term loan due 2019. The partnership intends to use loan proceeds to fund a portion of the Sunoco Logistics Partners L.P. (SXL) general partnership/incentive distribution right (GP/IDR) and Bakken pipeline project exchange, repay borrowings under its revolving credit facility, and for general partnership purposes. In the exchange transaction, ETE will receive an additional 40% of SXL's GP/IDR cash flows (bringing ETE's total to 90%) and ETP will receive a 45% interest in the Bakken pipeline project plus units and cash. Pro forma for the term loan,

...NEW YORK (Standard & Poor's) Feb. 23, 2015--Standard & Poor's Ratings Services said today it assigned its '##' issue-level rating and '4' recovery rating to Energy Transfer Equity L.P.'s (ETE) $500 million senior secured term loan due 2019. The partnership intends to use loan proceeds to fund a portion of the Sunoco Logistics Partners L.P. (SXL) general partnership/incentive distribution right (GP/IDR) and Bakken pipeline project exchange, repay borrowings under its revolving credit facility, and for general partnership purposes. In the exchange transaction, ETE will receive an additional 40% of SXL's GP/IDR cash flows (bringing ETE's total to 90%) and ETP will receive a 45% interest in the Bakken pipeline project plus units and cash. Pro forma for the term loan, ETE has about $5.4 billion of reported debt on a stand-alone basis. Dallas-based ETE is a large publicly traded U.S. midstream energy partnership. (For the corporate credit rating rationale, see our summary analysis on ETE published...

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