8-KOther EventsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Corporate Update (Jan 6, 2011)

Filed January 6, 2011For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) announced via an 8-K filing on January 5, 2011, that its subsidiary, Enterprise Products Operating LLC (EPO), has entered into an underwriting agreement for a public offering of $1.5 billion in senior notes. This offering includes $750 million of 3.20% Senior Notes due 2016 and $750 million of 5.95% Senior Notes due 2041. These notes are guaranteed on an unsecured and unsubordinated basis by the parent partnership, EPD. The closing of this significant debt issuance is anticipated for January 13, 2011, with the proceeds intended to reduce borrowings under its revolving credit facility, repay upcoming maturing senior notes, and for general corporate purposes. This transaction represents a strategic move by EPD to strengthen its balance sheet and manage its debt obligations. The substantial capital raised indicates the company's ongoing investment and operational needs, as well as its ability to access public debt markets effectively. Investors should note that affiliates of certain underwriters are lenders to EPO, meaning they will benefit from a portion of the proceeds, and that EPD and its subsidiaries have provided customary indemnification to the underwriters. The company has filed the relevant registration statements and prospectus supplements with the SEC to facilitate this offering.

Key Highlights

  • 1Enterprise Products Partners L.P. (EPD) announced a $1.5 billion public offering of senior notes through its subsidiary, Enterprise Products Operating LLC (EPO).
  • 2The offering consists of $750 million in 3.20% Senior Notes due 2016 and $750 million in 5.95% Senior Notes due 2041.
  • 3The senior notes are guaranteed by EPD on an unsecured and unsubordinated basis.
  • 4The closing of the offering is scheduled for January 13, 2011.
  • 5Proceeds will be used to reduce revolving credit facility borrowings, repay $450 million in senior notes due February 2011, and for general corporate purposes.
  • 6The offering was registered under the Securities Act of 1933 via a Form S-3 registration statement and a prospectus supplement.
  • 7Affiliates of some underwriters are lenders under EPO's credit facility, indicating they will receive a portion of the offering proceeds.

Frequently Asked Questions

This 8-K filing announces Enterprise Products Partners L.P.'s (EPD) intention to issue $1.5 billion in senior notes through its subsidiary, Enterprise Products Operating LLC (EPO), and details the underwriting agreement for this public offering.

The proceeds are earmarked for three main purposes: temporarily reducing borrowings under EPO's multi-year revolving credit facility, repaying $450 million of senior notes maturing in February 2011, and for general company purposes.

The offering includes $750 million of 3.20% Senior Notes due 2016 and $750 million of 5.95% Senior Notes due 2041. These notes are guaranteed by Enterprise Products Partners L.P. on an unsecured and unsubordinated basis.

Yes, the filing notes that affiliates of certain underwriters are lenders under EPO's credit facility. This means these affiliates will receive a significant portion of the proceeds from the note offering, as they will be repaid from those funds.