8-KOther EventsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Corporate Update (Apr 8, 2016)

Filed April 8, 2016For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) announced on April 4, 2016, the execution of an underwriting agreement for a significant public offering of senior notes. This offering totals $1.25 billion across three series: $575.0 million in 2.850% senior notes due April 2021, $575.0 million in 3.950% senior notes due February 2027, and a $100.0 million re-opening of existing 4.900% senior notes due May 2046. The proceeds from this offering are earmarked for the repayment of debt, including amounts outstanding under EPD's commercial paper program and maturing notes. This move is intended to manage the company's debt structure and potentially reduce short-term financing needs. The notes are guaranteed by the Partnership, and the offering is registered under the Securities Act of 1933, with the closing anticipated for April 13, 2016. Investors should note that affiliates of certain underwriters may receive a substantial portion of the proceeds if they hold the debt being repaid.

Key Highlights

  • 1EPD is conducting a $1.25 billion public offering of senior notes through its subsidiary, Enterprise Products Operating LLC (EPO).
  • 2The offering comprises three tranches: $575 million of 2.850% notes due 2021, $575 million of 3.950% notes due 2027, and $100 million of 4.900% notes due 2046 (a re-opening of an existing series).
  • 3The net proceeds are intended for debt repayment, including commercial paper obligations and maturing debt.
  • 4The senior notes are unsecured and unsubordinated and are guaranteed by Enterprise Products Partners L.P.
  • 5The closing of the offering is scheduled for April 13, 2016.
  • 6Affiliates of the underwriters may benefit from the debt repayment if they hold commercial paper or senior notes being refinanced.

Frequently Asked Questions

The primary purpose of this offering is to generate proceeds for the repayment of debt. This includes amounts outstanding under Enterprise Products Operating LLC's (EPO) commercial paper program and other maturing debt obligations. This is a debt management and refinancing activity.

The senior notes are being issued by Enterprise Products Operating LLC (EPO), a subsidiary of Enterprise Products Partners L.P. (EPD). The notes are guaranteed on an unsecured and unsubordinated basis by the Partnership itself (EPD).

The re-opening means that EPD is issuing additional notes of an existing series. These new notes will have the same terms and conditions as the original 4.900% senior notes due 2046 and will trade under the same CUSIP number, effectively creating a larger outstanding balance for that specific note series.

Yes, the filing notes that affiliates of certain underwriters may hold EPO's commercial paper or senior notes that are intended to be repaid with the proceeds from this offering. Consequently, these affiliates could receive a substantial portion of the net proceeds, which is a customary disclosure in such transactions.