8-KRegulation FDOther EventsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Regulation FD Disclosure (Feb 8, 2013)

Filed February 8, 2013For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on February 8, 2013, reporting on a significant public offering of its common units. On February 5, 2013, the partnership entered into an underwriting agreement for the sale of 8,000,000 common units, with an additional 1,200,000 units available to cover over-allotments, which were fully exercised by the underwriters. The closing of this offering was scheduled for February 8, 2013. The proceeds from this offering are intended for general partnership purposes, which may include debt repayment (specifically mentioning potential repayment under its revolving credit facility or commercial paper program), working capital, capital expenditures, and acquisitions. Notably, affiliates of certain underwriters are lenders under EPD's credit facility, indicating they will receive a substantial portion of the offering proceeds. This event signifies a capital-raising initiative to support the company's ongoing operations and growth strategies.

Key Highlights

  • 1EPD successfully priced a public offering of 8,000,000 common units on February 5, 2013.
  • 2Underwriters fully exercised their over-allotment option for an additional 1,200,000 common units.
  • 3The offering's closing was scheduled for February 8, 2013.
  • 4Proceeds will be used for general partnership purposes, including debt repayment, working capital, capital expenditures, and acquisitions.
  • 5Affiliates of some underwriters are lenders to EPD and will benefit from the proceeds.
  • 6The offering was registered under the Securities Act via a Form S-3 registration statement.
  • 7The filing includes the underwriting agreement, legal opinions, and press releases as exhibits.

Frequently Asked Questions

The primary purpose of this 8-K filing was to report on Enterprise Products Partners L.P.'s public offering of common units, including the pricing of the offering, the full exercise of the underwriters' over-allotment option, and the intended use of the net proceeds.

The offering involved 8,000,000 common units, plus an additional 1,200,000 units from the over-allotment option that was fully exercised, totaling 9,200,000 units. The exact amount raised would depend on the pricing of these units, which is detailed in the press release filed as Exhibit 99.1.

EPD intends to use the net proceeds for general partnership purposes. This includes potential repayment of debt (such as amounts outstanding under its revolving credit facility or commercial paper program), funding working capital needs, capital expenditures, and potential acquisitions.

Yes, the filing notes that affiliates of certain underwriters are lenders under EPD's multi-year revolving credit facility. Consequently, these affiliates are expected to receive a substantial portion of the offering proceeds, which represents a potential conflict of interest, although it is disclosed in the filing.