Summary
Enterprise Products Partners L.P. (EPD), through its subsidiary Enterprise Products Operating LLC (EPO), announced on June 1, 2009, the public offering of $500 million in 4.60% Senior Notes due 2012. These notes are guaranteed by the Partnership. The proceeds from this offering are earmarked for specific debt obligations, including the full repayment of a $200 million term loan and a reduction in borrowings under its revolving credit facility, with any remaining funds designated for general partnership purposes. This debt issuance is a strategic move to manage EPD's capital structure and debt maturity profile. Notably, several of the underwriters or their affiliates are existing lenders to EPD, indicating ongoing banking relationships and potential involvement in the company's financing activities. The offering is being conducted under a previously filed registration statement, with closing anticipated for June 10, 2009.
Key Highlights
- 1Enterprise Products Operating LLC (EPO) is issuing $500 million in 4.60% Senior Notes due 2012.
- 2The notes are guaranteed by the parent company, Enterprise Products Partners L.P. (EPD).
- 3Proceeds will be used to repay a $200 million term loan and reduce outstanding borrowings under a revolving credit facility.
- 4A portion of the proceeds may be used for general partnership purposes.
- 5The offering is being underwritten by a syndicate including Barclays Capital Inc., DnB NOR Markets, Inc., Mizuho Securities USA Inc., RBS Securities Inc., Scotia Capital (USA) Inc., Wachovia Capital Markets, LLC, and SunTrust Robinson Humphrey, Inc.
- 6Affiliates of some underwriters are existing lenders to EPD, indicating existing financial relationships.
- 7The closing of the issuance is scheduled for June 10, 2009.