8-KMaterial AgreementsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Material Agreement (Nov 12, 2013)

Filed November 12, 2013For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed a Form 8-K on November 12, 2013, to announce the entry into a material definitive agreement concerning an equity distribution. The company has established an "at-the-market" (ATM) equity offering program, allowing it to issue and sell common units representing limited partner interests through a syndicate of investment banks. This agreement provides EPD with financial flexibility to raise capital up to an aggregate offering price of $1.25 billion. This strategic move allows EPD to potentially access significant capital through the issuance of new units on the New York Stock Exchange at prevailing market prices. This flexibility can be used to fund growth initiatives, acquisitions, or strengthen its balance sheet. Investors should monitor the timing and volume of any unit sales, as well as the stated use of proceeds, to understand the impact on unit dilution and the company's financial leverage.

Key Highlights

  • 1EPD entered into an Equity Distribution Agreement on November 12, 2013.
  • 2The agreement allows EPD to issue and sell common units representing limited partner interests.
  • 3The aggregate offering price for the units is up to $1,250,000,000.
  • 4Sales will be made through a syndicate of named financial institutions (Managers).
  • 5Units can be sold via ordinary brokers' transactions on the NYSE at market prices, in block transactions, or directly to Managers as principal.
  • 6The issuance is made under a Form S-3 registration statement (Registration No. 333-191514).
  • 7This facility provides EPD with ongoing flexibility to raise capital.

Frequently Asked Questions

The primary purpose is to establish an 'at-the-market' (ATM) equity offering program, allowing EPD to issue and sell up to $1.25 billion of its common units over time to access capital at prevailing market prices.

The units will be sold through a group of investment banks (the Managers) acting as agents. Sales can occur through standard stock exchange transactions, block trades, or directly to the Managers acting as principals.

The $1.25 billion represents the maximum aggregate offering price of common units that EPD may issue and sell under this agreement. It does not mean EPD will necessarily issue all of these units.

Yes, if EPD chooses to issue and sell new common units, it would increase the total number of outstanding units, which could potentially dilute the ownership percentage and earnings per unit for existing unitholders. The extent of dilution depends on the amount of units actually sold and the use of the proceeds.