Energy Transfer and Crestwood Announce Preliminary Election Results of Crestwood Preferred Unitholders

Strategic Insights -

Energy Transfer LP, a leading energy company, and Crestwood Equity Partners LP, a midstream master limited partnership, announced on November 1, 2023, the preliminary results of the election made by holders of Crestwood's outstanding 9.250% Perpetual Preferred Units regarding the form of merger consideration to be received in connection with Energy Transfer's pending acquisition of Crestwood.

Key Takeaways:

  • The preliminary election results show that holders of Crestwood's outstanding 9.250% Perpetual Preferred Units have elected to have their units converted into Energy Transfer common units, with 83.44% choosing this option, 16.36% opting for redemption in exchange for cash or Crestwood Common Units, and 0.20% choosing to be converted into a new Energy Transfer security.
  • The conversion ratio of one Crestwood Common Unit to 2.07 Energy Transfer common units is applicable to the units that will be converted into Energy Transfer common units.
  • The preferred units that are redeemed in exchange for cash will be redeemed at a price of $9.857484 per preferred unit plus accrued and unpaid distributions to the date of such redemption.
  • In connection with the proposed transaction, Energy Transfer and Crestwood have filed a registration statement on Form S-4 with the U.S. Securities and Exchange Commission (SEC), which includes a proxy statement/prospectus filed on September 29, 2023.
  • The proposed transaction is subject to the terms and conditions set forth in the Merger Agreement dated August 16, 2023, and is expected to be consummated in the near future.

Statistics:

  • 83.44% of Crestwood Preferred Unitholders elected to have their units converted into Energy Transfer common units.
  • 16.36% of Crestwood Preferred Unitholders opted for redemption in exchange for cash or Crestwood Common Units.
  • 0.20% of Crestwood Preferred Unitholders chose to be converted into a new Energy Transfer security.
  • The conversion ratio of one Crestwood Common Unit to 2.07 Energy Transfer common units is applicable to the units that will be converted into Energy Transfer common units.
  • The redemption price for the preferred units is $9.857484 per preferred unit plus accrued and unpaid distributions to the date of such redemption.

Sources:

  • Energy Transfer LP and Crestwood Equity Partners LP, "Crestwood Equity Partners LP and Energy Transfer LP Announce Preliminary Election Results of Crestwood Preferred Unitholders," November 1, 2023 (Business Wire).
  • Energy Transfer LP, Form S-4, filed with the U.S. Securities and Exchange Commission on September 29, 2023.
  • Crestwood Equity Partners LP, Form 10-K, filed with the U.S. Securities and Exchange Commission on February 27, 2023.