8-KOther EventsExhibits & Filings

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

Filed October 8, 2009For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on October 8, 2009, detailing significant progress in its principal operating subsidiary's, Enterprise Products Operating LLC, exchange offers and consent solicitations related to TEPPCO Partners, L.P. notes. As of the early consent date, approximately $1.92 billion in TEPPCO notes had been tendered, successfully achieving the necessary consents to amend the governing indentures. This development is crucial as it paves the way for the proposed amendments to become effective, contingent on other standard closing conditions. Furthermore, the company announced an amendment to the exchange offers. Notes tendered after the early consent date but before the new expiration date of October 26, 2009, will now receive an exchange price of 100% of their principal amount, an improvement from the previously offered 97%. This adjustment aims to incentivize further participation and indicates a strategic move by EPD to successfully consolidate or restructure TEPPCO's debt obligations.

Key Highlights

  • 1EPD's subsidiary, Enterprise Products Operating LLC, successfully obtained requisite consents for TEPPCO Partners, L.P. notes as of the early consent date.
  • 2Approximately $1.92 billion in aggregate principal amount of TEPPCO notes were validly tendered for exchange by the early consent deadline.
  • 3The successful consents will lead to the adoption of proposed amendments to the TEPPCO indentures, assuming all other conditions are met.
  • 4Enterprise Products Operating LLC amended the exchange offers, improving the exchange price for notes tendered after the early consent date.
  • 5The revised exchange price for post-early consent tenders is 100% of the principal amount, up from the previous offer of 97%.
  • 6The exchange offers and consent solicitations are further detailed in a prospectus dated October 7, 2009, incorporated by reference.

Frequently Asked Questions

These actions are significant because they indicate EPD's progress in restructuring or consolidating TEPPCO's debt. Successful completion of these offers, evidenced by the high tender rates and received consents, can lead to a more streamlined capital structure, potentially reducing financial complexity and improving the overall financial health of the combined entities, which is beneficial for EPD's long-term prospects.

EPD amended the offer to incentivize additional noteholders to participate after the early consent date. By increasing the exchange price to 100% of the principal amount from the previous 97%, EPD demonstrates a commitment to completing the transaction and may be seeking to ensure maximum participation or address any remaining concerns from TEPPCO noteholders.

This means that enough TEPPCO noteholders have agreed to the proposed changes to the terms of their existing debt agreements (indentures) for those changes to be legally binding on all holders of that specific series of notes, provided all other conditions of the exchange are met. This is a critical step toward amending the debt structure.

Yes, while the consents have been received, the press release states that the amendments are contingent on 'all other conditions of the exchange offers and consent solicitations are satisfied or waived, as applicable.' Investors should refer to the prospectus dated October 7, 2009, for a full list of these conditions, which could include factors like the total amount of notes tendered or regulatory approvals, that could still impact the completion of the transaction.