Summary
Enterprise Products Partners L.P. (EPD) filed an 8-K on August 23, 2010, primarily to report an amendment to a material definitive agreement. Specifically, Duncan Energy Partners L.P. (DEP), a partially owned subsidiary of EPD, amended its loan agreement with EPD's wholly-owned subsidiary, Enterprise Products Operating LLC (EPO). The amendment's core purpose was to extend the maturity date of a $200 million revolving credit facility from September 28, 2010, to December 31, 2010. This extension provides DEP with additional time to manage its financial obligations. As of August 19, 2010, DEP had $75 million in outstanding borrowings under this facility. Investors should note that this is a routine amendment that impacts the short-term liquidity of a subsidiary and does not appear to involve any new material financial commitments or significant changes to the underlying loan terms beyond the maturity date. The primary impact for EPD investors is the continued operational flexibility for its subsidiary.
Key Highlights
- 1Amendment to the DEP-EPO Loan Agreement executed on August 20, 2010.
- 2Maturity date of the $200 million loan facility extended from September 28, 2010, to December 31, 2010.
- 3The borrower is Duncan Energy Partners L.P. (DEP), and the lender is Enterprise Products Operating LLC (EPO), a wholly-owned subsidiary of EPD.
- 4As of August 19, 2010, $75 million was outstanding under the loan agreement.
- 5All other terms and conditions of the original loan agreement remain unchanged.
- 6The filing confirms a routine extension of credit for a subsidiary, providing additional liquidity runway.