8-KRegulation FDOther EventsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Regulation FD Disclosure (Sep 28, 2012)

Filed September 28, 2012For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on September 28, 2012, to report on a significant public offering of its common units. The company announced the pricing of 8,000,000 common units, with an additional 1,200,000 units issued to cover the underwriters' full exercise of their over-allotment option. The closing for these transactions was scheduled for September 28, 2012. The primary purpose of this offering was to generate proceeds for temporarily reducing borrowings under Enterprise Products Operating LLC's (EPO's) multi-year revolving credit facility and for general partnership purposes. This action indicates a focus on strengthening the company's balance sheet and improving its liquidity position by addressing existing debt.

Key Highlights

  • 1EPD priced a public offering of 8,000,000 common units representing limited partner interests.
  • 2Underwriters fully exercised their over-allotment option, resulting in the sale of an additional 1,200,000 common units.
  • 3The closing of the issuance and sale of all common units was scheduled for September 28, 2012.
  • 4Proceeds from the offering will be used to temporarily reduce borrowings under EPO's revolving credit facility.
  • 5Remaining proceeds will be used for general partnership purposes.
  • 6Affiliates of some underwriters are lenders under EPO's credit facility and will receive a substantial portion of the offering proceeds.
  • 7The offering was registered under the Securities Act of 1933 via a Form S-3 registration statement.

Frequently Asked Questions

The main purpose of the common unit offering was to raise capital to temporarily reduce borrowings under Enterprise Products Operating LLC's (EPO's) multi-year revolving credit facility and to fund general partnership purposes. This move is aimed at strengthening the company's financial position and liquidity.

Enterprise Products Partners L.P. initially offered 8,000,000 common units. The underwriters exercised their over-allotment option in full, leading to the sale of an additional 1,200,000 common units, bringing the total to 9,200,000 units.

The net proceeds from the offering are primarily intended for Enterprise Products Partners L.P. to reduce debt and for general partnership uses. Notably, affiliates of some of the underwriters are lenders under EPO's revolving credit facility, meaning they will receive a significant portion of the funds raised to repay outstanding borrowings.

The closing of the issuance and sale of the common units, including the over-allotment units, was scheduled to occur on September 28, 2012.