Energy Transfer 2010 Annual Report Download - page 154
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HOLP Credit Facility
HOLP previously had a $75.0 million Senior Revolving Facility (the “HOLP Credit Facility”) available
through June 30, 2011. As of December 31, 2010, the HOLP Credit Facility had no outstanding balance in
revolving credit loans and outstanding letters of credit of $0.5 million. The amount available for borrowing
as of December 31, 2010 was $74.5 million. The HOLP Credit Facility was terminated in February 2011,
and HOLP will meet its future liquidity needs through intercompany loans from ETP.
Covenants Related to Our Credit Agreements
The agreements related to the ETP Senior Notes contain restrictive covenants customary for an issuer with
an investment-grade rating from the rating agencies, which covenants include limitations on liens and a
restriction on sale-leaseback transactions.
The credit agreement relating to the ETP Credit Facility contains covenants that limit (subject to certain
exceptions) the Partnership’s and certain of the Partnership’s subsidiaries’ ability to, among other things:
• incur indebtedness;
• grant liens;
• enter into mergers;
• dispose of assets;
• make certain investments;
• make Distributions (as defined in such credit agreement) during certain Defaults (as defined in such
credit agreement) and during any Event of Default (as defined in such credit agreement);
• engage in business substantially different in nature than the business currently conducted by the
Partnership and its subsidiaries;
• engage in transactions with affiliates;
• enter into restrictive agreements; and
• enter into speculative hedging contracts.
The credit agreement related to the ETP Credit Facility also contains a financial covenant that provides that
on each date we make a distribution, the Leverage Ratio, as defined in the ETP Credit Facility, shall not
exceed 5.0 to 1, with a permitted increase to 5.5 to 1 during a specified acquisition period, as defined in the
ETP Credit Facility. This financial covenant could therefore restrict our ability to make cash distributions to
our Unitholders, our General Partner and the holder of our IDRs.
The agreements related to the HOLP Senior Secured Notes contain customary restrictive covenants,
including the maintenance of financial covenants and limitations on substantial disposition of assets,
changes in ownership, the level of additional indebtedness and creation of liens.
The agreements related to the Transwestern senior unsecured notes contain certain restrictions that, among
other things, limit the incurrence of additional debt, the sale of assets and the payment of dividends and
specify a maximum debt to capitalization ratio.
F-28