Summary
Enterprise Products Partners L.P. (EPD) announced a significant debt financing transaction through its subsidiary, Enterprise Products Operating LLC (EPO). On August 6, 2012, EPD entered into an underwriting agreement for the public offering of $650 million in 1.25% senior notes due August 2015 and $1.1 billion in 4.45% senior notes due February 2043. These new notes, totaling $1.75 billion, are guaranteed by the Partnership, providing investors with an additional layer of credit support. The proceeds from this offering are earmarked to temporarily reduce borrowings under EPO's $3.5 Billion Multi-Year Revolving Credit Facility. This facility was recently utilized to repay maturing senior notes. The use of proceeds indicates a strategic move to manage short-term debt obligations and maintain financial flexibility. Notably, affiliates of the underwriters are lenders under the revolving credit facility, meaning they will benefit from a substantial portion of the offering's proceeds.
Key Highlights
- 1EPD announced a public offering of $1.75 billion in senior notes through its subsidiary EPO.
- 2The offering consists of $650 million in 1.25% senior notes due 2015 and $1.1 billion in 4.45% senior notes due 2043.
- 3The Partnership (EPD) is providing an unsecured and unsubordinated guarantee for these new notes.
- 4Proceeds will be used to temporarily reduce borrowings under EPO's $3.5 Billion Multi-Year Revolving Credit Facility.
- 5The revolving credit facility was used to repay $500 million in senior notes maturing on August 1, 2012.
- 6Affiliates of the underwriters are lenders under the credit facility and will receive a significant portion of the offering proceeds.
- 7The transaction was facilitated by an underwriting agreement with Citigroup Global Markets Inc., Barclays Capital Inc., and SunTrust Robinson Humphrey, Inc.