Summary
Enterprise Products Partners L.P. (EPD) filed an 8-K on September 4, 2007, to report the completion of a public offering of $800 million in 6.300% Senior Notes due 2017 by its operating subsidiary, Enterprise Products Operating LLC. These notes are guaranteed by the Partnership. The net proceeds, approximately $793.9 million after expenses, were initially used to reduce outstanding borrowings under the company's revolving credit facility. This offering is significant as it provides the company with long-term financing. A substantial portion of these proceeds will be used to retire the Operating Company's 4.000% Senior Notes due October 2007, which amount to $500 million. The remainder of the net proceeds will be used for general partnership purposes, indicating a strategic move to manage debt maturity and optimize the capital structure. This transaction demonstrates proactive debt management and the company's ability to access capital markets.
Key Highlights
- 1Completion of an $800 million public offering of Senior Notes due 2017 by Enterprise Products Operating LLC.
- 2The Partnership provides an unsecured and unsubordinated guarantee for the Senior Notes.
- 3Net proceeds of approximately $793.9 million were raised after deducting underwriting discounts and expenses.
- 4Proceeds were initially used to pay down the company's multi-year revolving credit facility.
- 5A key use of funds will be to repay $500 million in Senior Notes maturing in October 2007.
- 6Remaining proceeds are designated for general partnership purposes, indicating flexibility in capital allocation.
- 7The offering was registered on Form S-3, with details of the notes and related indentures filed as exhibits.