8-KOther EventsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Corporate Update (Sep 30, 2009)

Filed September 30, 2009For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) announced a significant debt offering via an 8-K filing on September 29, 2009, detailing the underwriting agreement for the issuance of $500 million in 5.25% Senior Notes due 2020 and $600 million in 6.125% Senior Notes due 2039 by Enterprise Products Operating LLC (EPO). These notes are guaranteed by EPD, providing investors with a direct link to the parent company's creditworthiness. The offering is registered under the Securities Act of 1933, indicating compliance with regulatory requirements for public offerings. The primary use of proceeds is to repay maturing senior notes, temporarily reduce borrowings under EPO's revolving credit facility, and for general corporate purposes. Notably, a portion of the increased availability under the credit facility is earmarked for repaying debt related to the pending merger with TEPPCO Partners, L.P., and for financing future capital expenditures and growth projects. This strategic move aims to strengthen the balance sheet, facilitate the TEPPCO integration, and support ongoing expansion.

Key Highlights

  • 1EPD announces a $1.1 billion debt offering of Senior Notes due 2020 and 2039 by its subsidiary EPO.
  • 2The Notes are guaranteed by Enterprise Products Partners L.P. (EPD), enhancing investor confidence.
  • 3Proceeds will be used to repay maturing debt, reduce revolving credit facility borrowings, and for general corporate purposes.
  • 4A portion of the funds will support the pending merger with TEPPCO Partners, L.P., by repaying TEPPCO's credit facility debt.
  • 5The offering is registered with the SEC, and the transaction is subject to customary closing conditions.
  • 6Affiliates of the underwriters are lenders under EPO's credit facility, indicating potential for significant proceeds to flow back to these entities.
  • 7The filing includes a notice regarding the TEPPCO merger, urging investors to review related SEC filings for important information.

Frequently Asked Questions

The total principal amount of the debt being issued is $1.1 billion, comprised of $500 million of 5.25% Senior Notes due 2020 and $600 million of 6.125% Senior Notes due 2039.

The proceeds will be used by EPO primarily to repay $500 million in maturing senior notes, temporarily reduce borrowings under its revolving credit facility, and for general company purposes. EPD expects to use increased credit facility availability, funded in part by these proceeds, to repay indebtedness related to the TEPPCO merger and to finance capital expenditures and growth projects.

The guarantee from EPD on the Senior Notes issued by EPO makes the debt obligations of EPO effectively the debt obligations of EPD. This provides investors with the credit support of the parent company, potentially reducing perceived risk compared to an unsecured note from a subsidiary.

The proceeds from this offering, through increased availability under the revolving credit facility, are intended to help finance the repayment of TEPPCO's credit facility debt upon the consummation of the merger. This indicates a strategic move to streamline the combined entity's capital structure post-merger.