8-KMaterial AgreementsOther EventsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Material Agreement (Feb 12, 2014)

Filed February 12, 2014For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) announced on February 12, 2014, the successful completion of a public offering of senior notes. This offering raised a total of $2 billion, split between $850 million in 3.90% Senior Notes due February 2024 and $1.15 billion in 5.10% Senior Notes due February 2045. These notes are guaranteed by the Partnership. This debt issuance indicates EPD's strategy to fund its operations and potentially future growth through long-term capital markets. The issuance of notes with staggered maturity dates suggests a proactive approach to managing its debt profile and capital structure. Investors should note the specific coupon rates and maturity dates as they impact the partnership's future interest expenses and refinancing needs.

Key Highlights

  • 1Completed a public offering of $850 million in 3.90% Senior Notes due February 2024.
  • 2Completed a public offering of $1.15 billion in 5.10% Senior Notes due February 2045.
  • 3Total aggregate principal amount of notes issued is $2.0 billion.
  • 4The notes are guaranteed on an unsecured and unsubordinated basis by Enterprise Products Partners L.P.
  • 5Interest payments are semi-annual, payable on February 15 and August 15, commencing August 15, 2014.
  • 6The offering was registered under the Securities Act of 1933 via a Form S-3 Registration Statement.

Frequently Asked Questions

The filing indicates the completion of a public offering of senior notes, totaling $2.0 billion. This is a common method for midstream energy companies like EPD to raise capital for general corporate purposes, which can include funding operations, acquisitions, or capital expansion projects.

EPD issued two series of notes: $850 million of 3.90% Senior Notes due February 2024 and $1.15 billion of 5.10% Senior Notes due February 2045. Interest is paid semi-annually, and the notes are guaranteed by Enterprise Products Partners L.P.

Issuing $2.0 billion in new debt will increase EPD's total liabilities and financial leverage. Investors should monitor EPD's debt-to-equity ratio and interest coverage ratios in future filings to assess the impact of this new debt on its financial health and risk profile.

EPD has call provisions allowing for redemption. For the 2024 Notes, redemption can occur before November 15, 2023, with a make-whole premium, or on or after that date at par. For the 2045 Notes, redemption can occur before August 15, 2044, with a make-whole premium, or on or after that date at par.