Energy Transfer 2012 Annual Report Download - page 104

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and potential limitations on some of its subsidiaries to participate in Southern Union’s cash management program; and limitations
on Southern Union’s ability to prepay debt.
Covenants Related to Sunoco Logistics Credit Agreements
The $350 and $200 million Credit Facilities contain various covenants limiting Sunoco Logistics' ability to incur indebtedness;
grant certain liens; make certain loans, acquisitions and investments; make any material change to the nature of its business; or
enter into a merger or sale of assets, including the sale or transfer of interests in the Operating Partnership’s subsidiaries. The credit
facilities also limit Sunoco Logistics, on a rolling four-quarter basis, to a maximum total consolidated debt to consolidated EBITDA
ratio, as defined in the underlying credit agreements, of 5.0 to 1, which can generally be increased to 5.5 to 1 during an acquisition
period. Sunoco Logistics' ratio of total debt to Adjusted EBITDA was 2.0 to 1 at December 31, 2012, as calculated in accordance
with the credit agreements.
The credit facility also limits West Texas Gulf, on a rolling four-quarter basis, to a minimum fixed charge coverage ratio, as defined
in the underlying credit agreement. The ratio for the fiscal quarter ending December 31, 2012 shall not be less than 1.00 to 1. The
minimum ratio fluctuates between 0.80 to 1 and 1.00 to 1 throughout the term of the revolver as specified in the credit agreement.
In addition, the credit facility limits West Texas Gulf to a maximum leverage ratio of 2.00 to 1. West Texas Gulf’s fixed charge
coverage ratio and leverage ratio were 1.29 to 1 and 0.62 to 1, respectively, at December 31, 2012.
Contingent Residual Support Agreement - AmeriGas
In order to finance the cash portion of the purchase price of the Propane Business described in Note 6 of our consolidated financial
statements, AmeriGas Finance LLC ("Finance Company"), a wholly owned subsidiary of AmeriGas, issued $550 million in
aggregate principal amount of 6.75% Senior Notes due 2020 and $1.0 billion in aggregate principal amount of 7.00% Senior Notes
due 2022. AmeriGas borrowed $1.5 billion of the proceeds of the Senior Notes issuance from Finance Company through an
intercompany borrowing having maturity dates and repayment terms that mirror those of the Senior Notes (the "Supported Debt").
In connection with the closing of the contribution of the Propane Business, ETP entered into a Contingent Residual Support
Agreement ("CRSA") with AmeriGas, Finance Company, AmeriGas Finance Corp. and UGI Corp., pursuant to which ETP will
provide contingent, residual support of the Supported Debt, as defined in the CRSA.
Contractual Obligations
The following table summarizes our long-term debt and other contractual obligations as of December 31, 2012, excluding amounts
related to our discontinued operations (see Note 3 to our consolidated financial statements)(in millions):
Payments Due by Period
Contractual Obligations Total Less Than 1 Year 1-3 Years 3-5 Years More Than 5 Years
Long-term debt $ 15,800 $ 609 $ 2,448 $ 3,182 $ 9,561
Interest on long-term debt (a) 11,135 892 1,583 1,356 7,304
Payments on derivatives 155 84 71 — —
Purchase commitments (b) 63,711 12,464 14,711 13,705 22,831
Transportation, natural gas storage and
fractionation contracts 431 56 130 119 126
Operating lease obligations 822 90 158 114 460
Other 271 75 86 39 71
Totals (c) $ 92,325 $ 14,270 $ 19,187 $ 18,515 $ 40,353
(a) Interest payments on long-term debt are based on the principal amount of debt obligations as of December 31, 2012. With
respect to variable rate debt, the interest payments were estimated using the interest rate as of December 31, 2012. To the
extent interest rates change, our contractual obligations for interest payments will change. See “Item 7A. Quantitative and
Qualitative Disclosures About Market Risk” for further discussion.
(b) We define a purchase commitment as an agreement to purchase goods or services that is enforceable and legally binding
(unconditional) on us that specifies all significant terms, including: fixed or minimum quantities to be purchased; fixed,
minimum or variable price provisions; and the approximate timing of the transactions. We have long and short-term product
purchase obligations for refined product and energy commodities with third-party suppliers. These purchase obligations are
entered into at either variable or fixed prices. The purchase prices that we are obligated to pay under variable price contracts
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