8-KOther EventsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Corporate Update (Feb 7, 2014)

Filed February 7, 2014For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on February 7, 2014, detailing a significant debt offering. The company, through its subsidiary Enterprise Products Operating LLC (EPO), entered into an underwriting agreement for the public offering of $850 million in 3.90% senior notes due February 2024 and $1.15 billion in 5.10% senior notes due February 2045, totaling $2 billion in new debt. The Partnership itself provides an unsecured and unsubordinated guarantee for these notes. The offering, registered under Form S-3, is a strategic move to refinance existing debt, including its revolving credit facility and commercial paper program, and for general corporate purposes. This substantial debt issuance indicates EPD's ongoing capital management strategy and its commitment to maintaining a strong liquidity position. The proceeds are earmarked for debt repayment, which could potentially lower interest expenses and extend debt maturities, thereby improving the company's financial flexibility. Investors should note that affiliates of the underwriters may be lenders or holders of existing debt being repaid, a common practice in such offerings. The closing of this offering was scheduled for February 12, 2014.

Key Highlights

  • 1Enterprise Products Operating LLC (EPO) to issue $2 billion in senior notes, consisting of $850 million of 3.90% notes due 2024 and $1.15 billion of 5.10% notes due 2045.
  • 2Enterprise Products Partners L.P. (EPD) provides an unsecured and unsubordinated guarantee for the issued notes.
  • 3Proceeds from the offering are intended for repayment of existing debt, including revolving credit facility borrowings and commercial paper, and for general company purposes.
  • 4The offering was made under a Registration Statement on Form S-3, indicating that EPD has previously filed such statements, suggesting a seasoned issuer.
  • 5The underwriting agreement includes customary conditions, representations, warranties, and indemnification provisions between EPD and the underwriters.
  • 6Affiliates of the underwriters may be lenders under EPO's credit facilities or holders of debt to be repaid, potentially benefiting from the offering.
  • 7The transaction was announced via a press release filed as an exhibit to the 8-K.

Frequently Asked Questions

Enterprise Products Operating LLC is issuing a total of $2 billion in senior notes. This is comprised of $850 million in 3.90% senior notes due February 2024 and $1.15 billion in 5.10% senior notes due February 2045.

The net proceeds are intended for the repayment of debt, including amounts outstanding under its multi-year revolving credit facility, 364-day credit agreement, or commercial paper program. Funds may also be used for general company purposes.

Yes, Enterprise Products Partners L.P. provides an unsecured and unsubordinated guarantee for the senior notes issued by its subsidiary, Enterprise Products Operating LLC.

Yes, affiliates of certain underwriters may be lenders under EPO's existing $3.5 Billion Multi-Year Revolving Credit Facility or may hold EPO's commercial paper notes or senior notes that are to be repaid. Consequently, these entities may receive a significant portion of the offering proceeds.