Energy Transfer 2010 Annual Report Download - page 82

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.
Other
MEP Guarantee
Previously, we guaranteed 50% of the obligations of MEP under its senior revolving credit facility (the “MEP
Facility”). The MEP Facility matured on February 28, 2011.
FEP Guarantee
On November 13, 2009, FEP entered into a credit agreement that provides for a $1.1 billion senior revolving
credit facility (the “FEP Facility”). We have guaranteed 50% of the obligations of FEP under the FEP Facility,
with the remainder of FEP Facility obligations guaranteed by KMP. Subject to certain exceptions, our guarantee
may be proportionately increased or decreased if our ownership percentage in FEP increases or decreases. The
FEP Facility is available through May 11, 2012. Amounts borrowed under the FEP Facility bear interest at a rate
based on either a Eurodollar rate or a prime rate.
As of December 31, 2010, FEP had $940.0 million of outstanding borrowings issued under the FEP Facility. Our
contingent obligation with respect to our guaranteed portion of FEP’s outstanding borrowings was $470.0
million, which is not reflected in our consolidated balance sheet. The weighted average interest rate on the total
amount outstanding as of December 31, 2010 was 3.2%.
Debt Covenants
The agreements related to ETP’s 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;
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