Summary
Enterprise Products Partners L.P. (EPD) filed an 8-K on December 13, 2011, to disclose details regarding a public offering of its common units. The partnership announced the pricing of the offering on December 8, 2011, and subsequently, the underwriters fully exercised their over-allotment option. The closing of this transaction was scheduled for December 13, 2011. The primary purpose of this offering was to raise capital. The net proceeds, including those from the over-allotment, are designated to temporarily reduce borrowings under Enterprise Products Operating LLC's multi-year revolving credit facility. This move aims to strengthen the partnership's balance sheet and financial flexibility.
Key Highlights
- 1EPD announced a public offering of 9,000,000 common units, with an additional 1,350,000 units available for over-allotment.
- 2The underwriters fully exercised their over-allotment option, indicating strong demand for the offering.
- 3The net proceeds from the offering will be used to temporarily reduce borrowings under the company's revolving credit facility.
- 4The offering was registered under the Securities Act of 1933 via a Form S-3 registration statement.
- 5The closing of the unit issuance was scheduled for December 13, 2011.
- 6Affiliates of certain underwriters are lenders under the credit facility, meaning they will receive a portion of the proceeds.
- 7The filing includes the Underwriting Agreement as Exhibit 1.1 and related press releases as Exhibits 99.1 and 99.2.
Frequently Asked Questions
This 8-K filing serves to disclose the details and pricing of a public offering of Enterprise Products Partners L.P.'s common units, including the underwriters' full exercise of the over-allotment option.
The net proceeds from the offering, including the over-allotment, are intended to be used to temporarily reduce borrowings under Enterprise Products Operating LLC's multi-year revolving credit facility.
The filing indicates strong demand as the underwriters fully exercised their over-allotment option for an additional 1,350,000 common units.
Yes, affiliates of certain underwriters are lenders under the company's multi-year revolving credit facility, and they are expected to receive a substantial portion of the offering proceeds.