ETE Goes on Fundraising Bender – Raises $2B+ from Units & IOUs

Energy Transfer Equity (ETE), owner of more than 62,500 miles of natural gas and natural gas liquids pipelines, with many miles in the Marcellus/Utica, has just gone a cash-raising bender. ETE is, by the way, the owner of the planned Rover Pipeline–a $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. On Monday the company announced they have raised $580 million in cash by selling new 32 million new units (think shares of stock). In addition, yesterday the company said it had floated new notes (IOUs) worth nearly $1.5 billion. Wow! Add it together and the total is over $2 billion–a serious pile of cash. What are they doing with all that cash? Paying off old debt…

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