Summary
Enterprise Products Partners L.P. (EPD) announced on August 11, 2011, the execution of an underwriting agreement for a public offering of $1.25 billion in aggregate principal amount of Senior Notes. This offering includes $650 million of 4.05% Senior Notes due 2022 and $600 million of 5.70% Senior Notes due 2042, issued by its subsidiary Enterprise Products Operating LLC (EPO) and guaranteed by the Partnership. The proceeds from this significant debt issuance are earmarked for reducing borrowings under EPD's revolving credit facility and, contingent upon the consummation of the Duncan Energy Partners L.P. merger, for repaying Duncan's existing indebtedness. A portion of the proceeds is also allocated for general corporate purposes.
Key Highlights
- 1EPD is issuing $1.25 billion in Senior Notes through its subsidiary EPO.
- 2The offering consists of two tranches: $650 million of 4.05% Senior Notes due 2022 and $600 million of 5.70% Senior Notes due 2042.
- 3The Notes are guaranteed on an unsecured and unsubordinated basis by Enterprise Products Partners L.P.
- 4Proceeds will be used to reduce borrowings under EPD's credit facility.
- 5Contingent on the Duncan Energy Partners L.P. merger, proceeds will also be used to repay Duncan's outstanding debt.
- 6Affiliates of the underwriters are lenders to EPD and Duncan, indicating they will receive a substantial portion of the offering proceeds.
- 7The offering is registered under the Securities Act of 1933 and is expected to close on August 24, 2011.
Frequently Asked Questions
The primary purposes of this debt offering are to temporarily reduce borrowings under Enterprise Products Partners L.P.'s (EPD) multi-year revolving credit facility and, subject to the consummation of the merger with Duncan Energy Partners L.P., to repay indebtedness outstanding under Duncan's existing credit facilities. Funds are also designated for general company purposes.
The offering includes $650,000,000 principal amount of 4.05% Senior Notes due 2022 and $600,000,000 principal amount of 5.70% Senior Notes due 2042. These notes are issued by Enterprise Products Operating LLC (EPO) and are guaranteed by Enterprise Products Partners L.P.
Yes, affiliates of several of the underwriters are lenders under EPD's revolving credit facility and Duncan's credit facilities. Consequently, these affiliates are expected to receive a substantial portion of the proceeds from the sale of the Notes, which represents a potential conflict of interest.
The closing of the issuance and sale of the Notes is scheduled for August 24, 2011.