Summary
Enterprise Products Partners L.P. (EPD) filed an 8-K on May 20, 2010, to report the completion of a significant public offering of senior notes. The offering raised a total of $2 billion, comprised of $400 million in 3.70% Senior Notes due 2015, $1 billion in 5.20% Senior Notes due 2020, and $600 million in 6.45% Senior Notes due 2040. These notes are issued by Enterprise Products Operating LLC (EPO) and are guaranteed on an unsecured and unsubordinated basis by the Partnership. This debt issuance represents a substantial capital raise that will likely be used for general corporate purposes, including funding ongoing projects and acquisitions, or for refinancing existing debt. Investors should note the varying maturity dates and coupon rates across the tranches, providing flexibility in debt management. The guarantee from the Partnership provides a level of security for noteholders.
Key Highlights
- 1Completed a $2 billion public offering of senior notes issued by Enterprise Products Operating LLC (EPO).
- 2The offering consists of three tranches: $400M of 3.70% Senior Notes due 2015, $1B of 5.20% Senior Notes due 2020, and $600M of 6.45% Senior Notes due 2040.
- 3The notes are guaranteed on an unsecured and unsubordinated basis by Enterprise Products Partners L.P.
- 4Interest payments are scheduled semi-annually, with specific dates varying by note series.
- 5The notes include provisions for redemption at EPO's discretion, subject to a make-whole premium.
- 6The issuance was completed on May 20, 2010.
- 7Legal opinions regarding the registration statement were filed as exhibits.