Energy Transfer Partners LP and Regency Energy Partners LP, both of Dallas, have completed the merger of an ETP indirect subsidiary with Regency, with Regency surviving as a wholly owned subsidiary of ETP, the companies reported.
“Effective with the opening of the market today,” the companies said, Regency “ceased to be a publicly traded partnership and its common units discontinued trading” on the New York Stock Exchange.
In connection with the transaction, Energy Transfer Equity LP, which owns the general partner and 100% of the incentive distribution rights (IDR) of ETP, will reduce the incentive distributions it receives from ETP by a total of $320 million over the next 5 years. The IDR subsidy will be $80 million in the first year following the closing of the merger and $60 million/year for the following 4 years, the companies said.