Summary
Enterprise Products Partners L.P. (EPD) announced on August 24, 2011, the completion of a significant debt offering, raising a total of $1.25 billion. This offering consisted of $650 million in 4.05% Senior Notes due 2022 and $600 million in 5.70% Senior Notes due 2042, issued by Enterprise Products Operating LLC (EPO) and guaranteed by the Partnership. This issuance of long-term debt provides EPD with substantial capital, likely to fund ongoing operations, capital expenditures, or potential acquisitions, thereby supporting the company's growth initiatives. The varying maturity dates of the notes offer flexibility in managing its debt profile. Investors should note the details of the indentures and guarantees, which outline the terms, interest payments, maturity, and redemption provisions associated with these new notes.
Key Highlights
- 1Completed a public offering of $1.25 billion aggregate principal amount of debt securities.
- 2The offering includes $650 million of 4.05% Senior Notes due 2022 and $600 million of 5.70% Senior Notes due 2042.
- 3The notes were issued by Enterprise Products Operating LLC (EPO).
- 4The Partnership (EPD) provided an unsecured and unsubordinated guarantee for the notes.
- 5Interest on the 2022 Notes accrues at 4.05% per annum, maturing on February 15, 2022.
- 6Interest on the 2042 Notes accrues at 5.70% per annum, maturing on February 15, 2042.
- 7The notes can be redeemed at any time by EPO at a price including accrued interest and a make-whole premium.