8-KMaterial AgreementsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Material Agreement (Aug 4, 2016)

Filed August 4, 2016For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) has filed an 8-K report on August 3, 2016, announcing the entry into an equity distribution agreement. This agreement allows the partnership to issue and sell common units representing limited partner interests from time to time through a syndicate of managers, potentially raising up to $1.89 billion. The sales will occur on the New York Stock Exchange through ordinary broker transactions at market prices, block transactions, or as otherwise agreed upon. This filing indicates EPD's proactive approach to capital raising, suggesting a potential need for funding future growth opportunities or strategic initiatives. Investors should note that the actual issuance and sale of units will be subject to market conditions and the partnership's discretion. The agreement also allows for potential sales to managers as principals, which would involve separate agreements.

Key Highlights

  • 1EPD entered into an equity distribution agreement on August 3, 2016.
  • 2The agreement allows for the potential sale of common units representing limited partner interests.
  • 3The maximum aggregate offering price for units to be sold is up to $1.89 billion.
  • 4Sales will be conducted through a syndicate of named managers on the New York Stock Exchange.
  • 5Units will be sold at market prices, in block transactions, or through other agreed-upon methods.
  • 6The partnership may also sell units to managers as principals under separate agreements.
  • 7The issuance is made pursuant to an existing Form S-3 registration statement.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose that Enterprise Products Partners L.P. has entered into a material definitive agreement, specifically an equity distribution agreement, which allows them to potentially issue and sell up to $1.89 billion worth of common units.

The equity distribution agreement allows EPD to sell its common units through designated managers on the New York Stock Exchange. These sales can happen from time to time, at prevailing market prices or through other negotiated terms, up to a total of $1.89 billion.

The units will be sold through ordinary brokers' transactions on the New York Stock Exchange at market prices, in block transactions, or as otherwise agreed upon by EPD and the managers. This means the actual sale price will be determined by market conditions at the time of sale.

No, the $1.89 billion represents the maximum aggregate offering price of units that EPD *may* issue and sell. The actual amount of units sold will depend on market conditions, EPD's capital needs, and the discretion of the partnership and the managers.