8-KMaterial AgreementsFinancial Events

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Material Agreement (Jun 26, 2006)

Filed June 26, 2006For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) announced on June 26, 2006, through an 8-K filing, a material amendment to its existing credit agreement. The most significant change is the extension of the maturity date for a substantial portion of its revolving credit facility, which is a positive development for the company's financial flexibility and liquidity management. This extension indicates continued confidence from its lenders and provides EPD with a longer runway for its operational and capital expenditure plans. The amendment also enhances the company's short-term borrowing capacity by increasing the swingline loan limit. Furthermore, the modification of financial covenants to permit pro forma adjustments for material projects in EBITDA calculations is a key operational benefit, potentially allowing for greater financial headroom as the company pursues growth initiatives. Overall, these changes signal a strengthening of EPD's financial structure and its commitment to strategic growth.

Key Highlights

  • 1Enterprise Products Operating L.P. (Operating Partnership) executed a second amendment to its Multi-Year Revolving Credit Agreement.
  • 2Maturity date extended by one year (to October 2011) for $1.2 billion of the credit facility commitments.
  • 3Borrowings for the remaining $48 million in commitments still mature in October 2010.
  • 4Aggregate principal amount for swingline loans increased from $20 million to $75 million.
  • 5The overall $1.25 billion commitment under the Credit Agreement remains unchanged.
  • 6Financial covenants modified to allow pro forma adjustments for material projects in Consolidated EBITDA calculations.
  • 7The amendment reflects continued lender support and enhances financial flexibility for EPD.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report a material definitive agreement, specifically the second amendment to Enterprise Products Operating L.P.'s Multi-Year Revolving Credit Agreement.

The amendment extends the maturity date for $1.2 billion of the credit facility commitments from October 2010 to October 2011, providing EPD with an additional year of financial flexibility for a significant portion of its credit lines.

The maximum amount available for swingline loans was increased from $20 million to $75 million, enhancing the Operating Partnership's ability to manage short-term liquidity needs.

Yes, the financial covenants were modified to allow the Operating Partnership to include pro forma adjustments for material projects in the calculation of its Consolidated EBITDA. This could provide greater flexibility in meeting financial covenants as the company undertakes significant capital projects.