Summary
Enterprise Products Partners L.P. (EPD) announced a significant public offering of senior notes through its subsidiary Enterprise Products Operating LLC (EPO) on October 2, 2014. The offering, totaling $2.75 billion, includes new notes with varying interest rates and maturity dates, as well as a re-opening of an existing series of notes. The partnership, EPD, is providing an unsecured and unsubordinated guarantee for these notes. The proceeds from this offering are earmarked for repaying existing debt, including amounts outstanding under its revolving credit agreement and commercial paper program, as well as addressing maturing senior notes. This debt issuance represents a strategic move by EPD to manage its capital structure and fund its operations, including recent acquisitions. Investors should note that affiliates of the underwriters may be lenders or noteholders, potentially receiving a substantial portion of the offering proceeds. The transaction is subject to customary closing conditions and is scheduled to close on October 14, 2014.
Key Highlights
- 1EPD subsidiary Enterprise Products Operating LLC (EPO) is issuing $2.75 billion in senior notes.
- 2The offering includes notes with maturities in 2019, 2025, 2054, and a re-opening of notes due in 2044.
- 3The partnership (EPD) is providing an unsecured and unsubordinated guarantee for the notes.
- 4Proceeds will be used to repay existing debt, including commercial paper, revolving credit facilities, and maturing senior notes.
- 5A portion of the proceeds will fund the repayment of $650.0 million in Senior Notes G due October 2014.
- 6Affiliates of the underwriters may be significant recipients of the offering proceeds.
- 7The offering is registered under the Securities Act of 1933 and is expected to close on October 14, 2014.