Energy Transfer Equity L.P. 'BB-' Rating Affirmed, Outlook Stable; 'BB-' Debt Rating Affirmed (Recovery Rating: '4')

U.S. midstream energy master limited partnership (MLP) Energy Transfer Equity L.P. (ETE) announced it has an agreement to acquire the general partner, incentive distribution rights (IDR), and about 12.5 million common units of USA Compression Partners L.P. (USA) from Riverstone Holdings LLC for about $250 million. USA will acquire its IDRs and economic general partner interest from ETE for about 8 million common units when the transaction closes. ETE will have the option to contribute its retained non-economic general partner interest to USA for an unspecified amount in the future. In the event the ETE and ETP collectively own less than 12.5 million USA common units, ETE will be required to contribute its non-economic general partner interest to USA. In

...+ U.S. midstream energy master limited partnership (MLP) Energy Transfer Equity L.P. (ETE) announced it has an agreement to acquire the general partner, incentive distribution rights (IDR), and about 12.5 million common units of USA Compression Partners L.P. (USA) from Riverstone Holdings LLC for about $250 million. + USA will acquire its IDRs and economic general partner interest from ETE for about 8 million common units when the transaction closes. + ETE will have the option to contribute its retained non-economic general partner interest to USA for an unspecified amount in the future. In the event the ETE and ETP collectively own less than 12.5 million USA common units, ETE will be required to contribute its non-economic general partner interest to USA. In either scenario, USA would be a fully independent partnership. + At the same time, Energy Transfer Partners L.P. (ETP) will contribute its CDM compression business to USA for total consideration of about $1.8 billion. + We are affirming...

Ratings Action