Summary
Enterprise Products Partners L.P. (EPD) announced a significant debt offering through its subsidiary, Enterprise Products Operating LLC (EPO), on May 11, 2010. The company entered into an underwriting agreement for the public offering of $2.0 billion in aggregate principal amount of senior notes across three tranches: $400 million of 3.70% Senior Notes due 2015, $1 billion of 5.20% Senior Notes due 2020, and $600 million of 6.45% Senior Notes due 2040. These notes are guaranteed by Enterprise Products Partners L.P. on an unsecured and unsubordinated basis. The primary purposes for the net proceeds from this substantial offering are to temporarily reduce borrowings under its revolving credit facility, repay outstanding senior notes maturing in June 2010, and for general corporate purposes. The closing of this issuance is scheduled for May 20, 2010. This transaction indicates proactive capital management by EPD to refinance existing debt and strengthen its liquidity position.
Key Highlights
- 1Enterprise Products Partners L.P. (EPD) subsidiary, Enterprise Products Operating LLC (EPO), is issuing $2.0 billion in senior notes.
- 2The offering includes notes with maturities in 2015 ($400 million at 3.70%), 2020 ($1 billion at 5.20%), and 2040 ($600 million at 6.45%).
- 3The notes are guaranteed by the parent company, Enterprise Products Partners L.P., on an unsecured and unsubordinated basis.
- 4Proceeds will be used to reduce revolving credit facility borrowings, repay maturing senior notes (due June 2010), and for general corporate purposes.
- 5The closing of the note issuance is expected on May 20, 2010.
- 6Affiliates of certain underwriters are lenders under EPD's credit facility, indicating a significant portion of proceeds will flow back to these entities.
- 7The transaction is registered under the Securities Act of 1933 via a Form S-3 registration statement.