UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 29, 2014
ENERGY TRANSFER PARTNERS, L.P.
(Exact name of Registrant as specified in its charter)
Delaware | 1-11727 | 73-1493906 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification Number) |
3738 Oak Lawn Avenue
Dallas, Texas 75219
(Address of principal executive offices)
(214) 981-0700
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Introductory Note
On August 29, 2014, Energy Transfer Partners, L.P. (ETP) completed the acquisition of Susser Holdings Corporation, a Delaware corporation (Susser), pursuant to the terms of the Agreement and Plan of Merger, dated as of April 27, 2014 (the Merger Agreement), by and among ETP, Energy Transfer Partners GP, L.P., a Delaware limited partnership and the general partner of ETP (ETP GP), Drive Acquisition Corporation, a wholly owned subsidiary of ETP (Merger Sub), Heritage Holdings, Inc., a Delaware corporation and wholly owned subsidiary of ETP (HHI) and, for certain limited purposes set forth in the Merger Agreement, Energy Transfer Equity, L.P., the indirect parent of ETP GP and ETP (ETE). Under the terms of the Merger Agreement, Merger Sub merged with and into Susser (the Merger), with Susser surviving the Merger.
At the effective time of the Merger on August 29, 2014 (the Effective Time), each share of Sussers common stock issued and outstanding immediately prior to the Effective Time (other than shares held by Susser in treasury, dissenting shares and shares held directly by ETP or Merger Sub and other than shares held by subsidiaries of the parties) was converted into the right to receive $40.125 in cash and 0.7253 of an ETP common unit (the Standard Mix of Consideration). In lieu of receiving the Standard Mix of Consideration, Susser stockholders could instead elect to receive, for each Susser common share, either (i) $80.25 in cash (the Cash Consideration) or (ii) 1.4506 ETP common units (the Unit Consideration); provided that the Cash Consideration and the Unit Consideration were each subject to proration to ensure that the aggregate amount of cash paid and the aggregate number of ETP common units issued in the Merger was the same that would be paid and issued if each share of Sussers common stock had been converted into the Standard Mix of Consideration.
The election deadline for the merger consideration was August 25, 2014 and the notice of guaranteed delivery deadline was August 28, 2014. Based on the final results of the merger consideration elections and the terms of the Merger Agreement:
| holders of approximately 7% of Sussers outstanding shares, or approximately 1,477,710 shares, elected and will receive the Standard Mix of Consideration; |
| holders of approximately 1% of Sussers outstanding shares, or approximately 264,536 shares, elected the Cash Consideration; |
| holders of approximately 79% of Sussers outstanding shares, or approximately 17,183,117 shares, elected and will receive the Unit Consideration; however, because the Unit Consideration was oversubscribed, such holders will receive $39.51 in cash and 0.7365 of an ETP Common Unit; and |
| holders of approximately 13% of Sussers outstanding shares, or approximately 2,869,212 shares, did not make a valid election or did not deliver a valid election form prior to the election deadline and, therefore are deemed to have elected and will receive the Standard Mix of Consideration. |
No fractional ETP common units will be issued in the Merger, and Sussers stockholders will receive cash in lieu of fractional ETP common units. The total consideration to be paid in cash will be approximately $875 million and the total consideration to be paid in equity will be approximately 15,807,605 ETP common units.
Immediately prior to the closing of the Merger, (1) ETP made a loan (the HHI Loan) to HHI, in an amount equal to $1.2 billion (the amount of cash sufficient to effect the delivery of the consideration for the Merger to the holders of Susser common stock in accordance with the applicable terms and provisions of the Merger Agreement plus amounts necessary, as agreed by ETP and HHI, to pay certain transaction expenses and refinance a portion of the outstanding indebtedness of Susser at closing), (2) HHI contributed to Merger Sub approximately $875 million in exchange for 50% of the issued and outstanding capital stock of Merger Sub and (3) ETP held for delivery to the exchange agent on Merger Subs behalf at the Effective Time the number of ETP common units issuable at closing, in continuation of its ownership of 50% of the issued and outstanding capital stock of Merger Sub.
As a result of the Merger, ETP owns an indirect 100% equity interest in Susser and the general partner interest, incentive distribution rights and a 50.2% limited partner interest in Susser Petroleum Partners LP. ETE owns, directly or indirectly, (i) approximately 30.8 million ETP common units, (ii) approximately 50.2 million Class H units of ETP, which track 50% of the underlying economics of the general partner interest and incentive distribution rights of Sunoco Logistics Partners L.P. and (iii) all of the outstanding equity interests in the general partner of ETP and, through such ownership, all of the incentive distribution rights in ETP.
A copy of the Merger Agreement was filed as Exhibit 2.1 to the Current Report on Form 8-K filed by ETP with the Securities and Exchange Commission on April 28, 2014 and is incorporated herein by reference.
Item 3.03. | Material Modification to Rights of Security Holders. |
The information set forth under Item 5.03 is incorporated into this Item 3.03 by reference.
Item 5.03. | Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year. |
On August 29, 2014, ETPs general partner adopted Amendment No. 8 to the Second Amended and Restated Agreement of Limited Partnership of ETP, dated as of July 28, 2009 (the LP Agreement Amendment). Pursuant to the terms of the LP Agreement Amendment, ETPs general partner (which is a wholly owned subsidiary of ETE) will relinquish its rights to $350 million in distributions it would otherwise be entitled to receive with respect to its incentive distribution rights in ETP for 40 consecutive quarters, commencing with the fiscal quarter beginning on July 1, 2014.
The above description of the LP Agreement Amendment does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the LP Agreement Amendment, which is attached as Exhibit 3.1 hereto.
Item 7.01. | Regulation FD Disclosure. |
On August 29, 2014, ETP and Susser issued a joint press release announcing the completion of the Merger. The full text of the press release is attached hereto as Exhibit 99.1.
Forward Looking Statements
This Current Report on Form 8-K may include certain statements concerning expectations for the future, including statements regarding the anticipated benefits and other aspects of the transactions described above, that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond managements control, including the risk that the anticipated benefits from the Merger cannot be fully realized. An extensive list of factors that can affect future results are discussed in ETPs Annual Report on Form 10-K for the year ended December 31, 2013 and other documents filed by ETP from time to time with the Securities and Exchange Commission (the SEC). ETP undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits.
Exhibit |
Description | |
3.1 | Amendment No. 8 to Second Amended and Restated Agreement of Limited Partnership of Energy Transfer Partners, L.P., dated August 29, 2014. | |
99.1 | Press release of Energy Transfer Partners, L.P. and Susser Holdings Corporation dated August 29, 2014. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ENERGY TRANSFER PARTNERS, L.P. | ||||||
By: | Energy Transfer Partners GP, L.P., its general partner | |||||
By: | Energy Transfer Partners, L.L.C, its general partner | |||||
Date: August 29, 2014 | ||||||
/s/ Martin Salinas, Jr. | ||||||
Martin Salinas, Jr. Chief Financial Officer |
EXHIBIT INDEX
Exhibit |
Description | |
3.1 | Amendment No. 8 to Second Amended and Restated Agreement of Limited Partnership of Energy Transfer Partners, L.P., dated August 29, 2014. | |
99.1 | Press release of Energy Transfer Partners, L.P. and Susser Holdings Corporation dated August 29, 2014. |
Exhibit 3.1
AMENDMENT NO. 8 TO
SECOND AMENDED AND RESTATED AGREEMENT OF LIMITED
PARTNERSHIP
OF
ENERGY TRANSFER PARTNERS, L.P.
August 29, 2014
This Amendment No. 8 (this Amendment No. 8) to the Second Amended and Restated Agreement of Limited Partnership of Energy Transfer Partners, L.P. (the Partnership), dated as of July 28, 2009, as amended by Amendment No. 1 thereto dated as of March 26, 2012, Amendment No. 2 thereto dated as of October 5, 2012, Amendment No. 3 thereto dated as of April 15, 2013, Amendment No. 4 thereto dated as of April 30, 2013, Amendment No. 5 thereto dated as of October 31, 2013, Amendment No. 6 thereto dated as of February 19, 2014 and Amendment No. 7 thereto dated as of March 3, 2014 (as so amended, the Partnership Agreement) is hereby adopted effective as of August 29, 2014 by Energy Transfer Partners GP, L.P., a Delaware limited partnership (the General Partner), as general partner of the Partnership. Capitalized terms used but not defined herein have the meaning given such terms in the Partnership Agreement.
WHEREAS, Section 13.1(d)(i) of the Partnership Agreement provides that the General Partner, without the approval of any Partner, may amend any provision of the Partnership Agreement to reflect a change that, in the discretion of the General Partner, does not adversely affect the Unitholders in any material respect;
WHEREAS, acting pursuant to the power and authority granted to it under Section 13.1(d)(i) of the Partnership Agreement, the General Partner has determined that the following amendment to the Partnership Agreement does not adversely affect the Unitholders in any material respect;
WHEREAS, pursuant to Section 6.1(a)(iv) of the Fourth Amended and Restated Limited Liability Company Agreement (as amended, the LLC Agreement) of Energy Transfer Partners, L.L.C., the general partner of the General Partner (GP LLC), Energy Transfer Equity, L.P. (ETE), as the sole member of GP LLC, has the exclusive authority to determine whether to amend, modify or waive any rights relating to the assets of the GP LLC or the General Partner (including the decision to amend or forego distributions in respect of the Incentive Distribution Rights) as contemplated by Section 1 of this Amendment No. 8 and Section 6.1(a)(iii)(9) of the LLC Agreement requires ETE to approve any amendment to the Partnership Agreement, and ETE has consented in writing to such amendment;
WHEREAS, the General Partner has entered into an Agreement and Plan of Merger (the Merger Agreement) by and among the Partnership, the General Partner, Drive Acquisition Corporation, a Delaware corporation (Merger Sub), and Susser Holdings Corporation, a Delaware corporation (the Company), pursuant to which Merger Sub will be merged with and into the Company (the Merger), with the Company surviving the Merger;
WHEREAS, as a condition and inducement to the Company entering into the Merger Agreement, the General Partner has agreed to execute and deliver this Amendment No. 8; and
WHEREAS, the General Partner has determined that the provisions relating to the reduction of quarterly distributions to holders of Incentive Distribution Rights (as defined in the Partnership Agreement) provided for in this Amendment No. 8 will be in the best interests of the Partnership and beneficial to the Limited Partners, including the holders of the Common Units;
NOW THEREFORE, the General Partner does hereby amend the Partnership Agreement as follows:
Section 1. Amendments. Section 6.4 is hereby amended by adding a new subsection (f) to such Section:
(f) Notwithstanding anything to the contrary in Section 6.4(a), and without limiting the provisions of Sections 6.4(b), 6.4(c), 6.4(d) and 6.4(e), and subject to Section 6.4(g), for a period of 40 consecutive Quarters commencing with the Quarter commencing on July 1, 2014, aggregate quarterly distributions, if any, to holders of the Incentive Distribution Rights provided by clauses (iii)(B), (iv)(B) and (v)(B) of Subsection 6.4(a) shall be reduced by $8.75 million per Quarter; provided that, in the event that the Partnership effectuates a transaction pursuant to which the incentive distribution rights of Susser Petroluem Partners LP, a Delaware limited partnership (Susser MLP), and the general partner interest of Susser MLP are transferred to Energy Transfer Equity, L.P., a Delaware limited partnership and the sole member of the general partner of the General Partner (ETE), in exchange for common units of the Partnership owned by ETE, then this subsection (f) shall terminate without any action necessary on the part of the Partnership or ETE. In addition, notwithstanding anything to the contrary herein, the General Partner, may, if approved by Special Approval and the holders of the Incentive Distribution Rights, make any amendment to Section 6.4(f) the General Partner deems necessary or advisable in connection with a proposed transaction approved by Special Approval.
Section 2. Except as hereby amended, the Partnership Agreement shall remain in full force and effect.
Section 3. This Amendment shall be governed by, and interpreted in accordance with, the laws of the State of Delaware, all rights and remedies being governed by such laws without regard to principles of conflicts of laws.
[Signature page follows]
2
IN WITNESS WHEREOF, this Amendment has been executed as of the date first above written.
GENERAL PARTNER: | ||
ENERGY TRANSFER PARTNERS GP, L.P. | ||
By: | Energy Transfer Partners, L.L.C., | |
its general partner | ||
By: | /s/ Martin Salinas, Jr. | |
Name: Martin Salinas, Jr. | ||
Title: Chief Financial Officer |
[Signature Page to Amendment No. 8 to ETP Partnership Agreement]
Exhibit 99.1
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ENERGY TRANSFER PARTNERS AND SUSSER HOLDINGS ANNOUNCE
SUCCESSFUL COMPLETION OF MERGER
DALLAS and CORPUS CHRISTI, August 29, 2014 Energy Transfer Partners, L.P. (NYSE:ETP) and Susser Holdings Corporation (NYSE:SUSS) today announced the successful completion of the previously announced merger of an indirect wholly owned subsidiary of ETP, with and into Susser, with Susser surviving the merger as a subsidiary of ETP.
As previously announced on April 28, 2014, Susser entered into a merger agreement with ETP. Under the terms of the merger agreement, Susser shareholders were able to receive, for each Susser common share they owned, a combination of $40.125 in cash and 0.7253 of an ETP common unit (the Standard Mix of Consideration). In lieu of receiving this Standard Mix of Consideration, Susser shareholders, for each Susser common share they owned, could make an election to receive $80.25 in cash (the Cash Consideration) or 1.4506 ETP common units (the Unit Consideration), with such Cash Consideration and Unit Consideration subject to proration in accordance with the merger agreement. Because the Unit Consideration was oversubscribed, all holders making a unit election will have their Unit Consideration prorated and a portion of it will be substituted with cash in accordance with the terms of the merger agreement. Based on the final results of the merger consideration elections:
| holders of approximately 7% of outstanding Susser shares, or approximately 1,477,710 shares, elected to and will receive the Standard Mix of Consideration; |
| holders of approximately 1% of outstanding Susser shares, or approximately 264,536 shares, elected to and will receive the Cash Consideration; |
| holders of approximately 79% of outstanding Susser shares, or approximately 17,183,117 shares, elected the Unit Consideration and will receive $39.51 in cash and 0.7365 of an ETP common unit; and |
| holders of approximately 13% of outstanding Susser shares, or approximately 2,869,212 shares made no election and will receive the Standard Mix of Consideration. |
In the aggregate, Susser shareholders will receive 50% of the merger consideration in cash and 50% in ETP common units. The total consideration to be paid in cash will be approximately $875 million and the total consideration to be paid in equity will be approximately 15,807,605 ETP common units.
Effective with the opening of the market today, Susser ceased to be a publicly traded company and its common stock discontinued trading on the NYSE.
Barclays and Credit Suisse acted as financial advisors, Morgan Stanley & Co. LLC delivered a fairness opinion to the Board of ETP. Vinson & Elkins acted as legal counsel to ETP, and Bingham McCutchen acted as tax counsel to ETP. BofA Merrill Lynch acted as financial advisor and Gibson, Dunn & Crutcher LLP acted as legal counsel to Susser.
Energy Transfer Partners, L.P. (NYSE: ETP) is a master limited partnership owning and operating one of the largest and most diversified portfolios of energy assets in the United States. ETP currently owns and operates approximately 35,000 miles of natural gas and natural gas liquids pipelines. ETP owns 100% of Panhandle Eastern Pipe Line Company, LP (the successor of Southern Union Company) and Sunoco, Inc., and a 70% interest in Lone Star NGL LLC, a joint venture that owns and operates natural gas liquids storage, fractionation and transportation assets. ETP also owns the general partner, 100% of the incentive distribution rights, and approximately 67.1 million common units in Sunoco Logistics Partners L.P. (NYSE: SXL), which operates a geographically diverse portfolio of crude oil and refined products pipelines, terminalling and crude oil acquisition and marketing assets. ETPs general partner is owned by ETE. For more information, visit the Energy Transfer Partners, L.P. web site at www.energytransfer.com.
Susser Holdings Corporation (NYSE: SUSS) is a third-generation family led business based in Corpus Christi, Texas, that operates more than 640 convenience stores in Texas, New Mexico and Oklahoma, with 595 under the Stripes® banner and 47 under the Sac-N-Pac banner. Restaurant service is available in more than 410 of its stores, primarily under the proprietary Laredo Taco Company® brand. Susser Holdings also is majority owner and owns the general partner of Susser Petroleum Partners LP. For more information, visit the Susser Holdings Corporation website at www.susser.com.
Susser Petroleum Partners LP (NYSE: SUSP) distributes approximately 1.7 billion gallons of motor fuel annually to Stripes® stores, independently operated consignment locations, convenience stores and retail fuel outlets operated by independent operators and other commercial customers in Texas, New Mexico, Oklahoma, Kansas and Louisiana.
Contacts: | ||
Susser Holdings Corporation | Energy Transfer Partners, L.P. | |
Susser Petroleum Partners LP | Brent Ratliff, Vice President, Investor Relations | |
Mary Sullivan, Chief Financial Officer | (214) 981-0700, brent.ratliff@energytransfer.com | |
(361) 884-2463, msullivan@susser.com | ||
Dennard-Lascar Associates | Granado Communications | |
Anne Pearson | Vicki Granado | |
(210) 408-6321, apearson@dennardlascar.com | (214) 599-8785, vicki@granadopr.com |
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