8-KRegulation FDOther EventsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Regulation FD Disclosure (Dec 6, 2010)

Filed December 6, 2010For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on December 6, 2010, primarily disclosing the pricing and closing of a public offering of common units. The partnership successfully sold 11,500,000 common units, with an additional 1,725,000 units issued to cover over-allotments, indicating strong investor demand. The net proceeds from this offering are earmarked for temporarily reducing outstanding borrowings under the company's revolving credit facility, which strengthens the balance sheet and improves financial flexibility. This offering, registered under a Form S-3 filing, was conducted through an underwriting agreement with several financial institutions. The closing was scheduled for December 6, 2010. Notably, some of the underwriters are also lenders under EPD's credit facility, meaning they will receive a significant portion of the proceeds, which is a standard practice in such transactions. Investors should view this offering as a positive step towards deleveraging and financial stability for Enterprise Products Partners L.P.

Key Highlights

  • 1EPD announced the pricing of a public offering of 11,500,000 common units.
  • 2An additional 1,725,000 common units were issued to cover the underwriters' over-allotment option, signaling robust demand.
  • 3The offering was registered under a Form S-3 and finalized through an underwriting agreement dated December 1, 2010.
  • 4Net proceeds from the offering will be used to temporarily reduce borrowings under the company's multi-year revolving credit facility.
  • 5Closing of the common unit issuance was scheduled for December 6, 2010.
  • 6Affiliates of some underwriters are lenders to EPD and will receive a portion of the offering proceeds.
  • 7The filing includes press releases detailing the offering's pricing and the full exercise of the over-allotment option.

Frequently Asked Questions

The primary purpose of this 8-K filing was to disclose the pricing and subsequent full exercise of the over-allotment option for a public offering of Enterprise Products Partners L.P.'s common units. It also details the underwriting agreement and the intended use of the net proceeds.

Enterprise Products Partners L.P. intends to use the net proceeds from this offering, including any proceeds from the over-allotment option, to temporarily reduce borrowings under its multi-year revolving credit facility. This action aims to strengthen the company's balance sheet and improve its financial flexibility.

Yes, there appeared to be strong investor interest as evidenced by the underwriters fully exercising their over-allotment option for an additional 1,725,000 common units, above the initially planned 11,500,000 units. This suggests positive market reception for EPD's common units.

The filing notes that affiliates of certain underwriters are lenders under EPD's revolving credit facility and will receive a substantial portion of the offering proceeds. Additionally, some underwriters and their affiliates have provided and may continue to provide investment banking, commercial banking, and advisory services to EPD. These relationships are disclosed as part of standard practice in such offerings.