"Market Conditions" Is Back; Energy Transfer Cancels $1.75 Billion Note Offering One Day After Launch
Damn, those windows of opportunity sure are brief: it seems syndicators now think the high frequency trading mentality has taken over the primary market. Less than 24 hours after launching a $1.75 billion unsecured note offering, Energy Transfer Equity pulled the very same refinancing attempt.
Energy Transfer Equity, L.P. announced that
due to market conditions over the past several days, ETE has opted to
not move forward with the contemplated debt offering at this time.
Uh... last time we checked, that 3% fee for HY bond underwriting had to be earned, even if that included a little more than 24 hours of work. Or at least lead underwriters Credit Suisse, Morgan Stanley, Wells Fargo, Bank of Countrywide Lynch and UBS, and co-managers BNP, Deustche and Suntrust (damn, did they just accidenatly forget to add the kitchen sink to that group - $1.75 billion and they need 8 managers - crikey) can pretend they know at least one account who doesn't back out of an offering after a so-called hiccup in the market. Alternatively, Zero Hedge Capital Markets, Inc. is happy to undercut all eight (yes, eight) members of the underwriting syndicate and place the offering at one tenth the proposed underwriting fee, and will even provide a highly confident letter (that has the simple contingency that the placement be done only if the equity market has had twenty successive 1%+ up days and not a single downtick in the past 24 hours). If ETE management finds our terms attractive, they know how to reach us.