What is the primary purpose of the Second Amendment to the 364-Day Revolving Credit Agreement?

The primary purpose of the Second Amendment is to extend the maturity date of the existing 364-day revolving credit facility and maintain EPO's access to a significant source of short-term liquidity. This provides financial flexibility for ongoing operations and potential strategic initiatives.

What is the maximum amount Enterprise Products Operating LLC can borrow under this amended agreement?

Under the terms of the Second Amendment, EPO can borrow up to $1.5 billion. Additionally, there is an option to increase this amount by $200 million to a total of $1.7 billion, provided certain conditions are met.

How does this amendment affect the company's debt maturity profile?

This amendment extends the maturity of a significant portion of the company's short-term credit facility by an additional 364 days from September 14, 2016. This helps manage the company's near-term debt obligations and provides a stable funding source.

What is the significance of the "Term-Out" option mentioned in the amendment?

The "Term-Out" option provides EPO with the flexibility to extend the maturity of the credit facility even further, to one year and 364 days from September 14, 2016, if EPO elects to do so in accordance with the agreement's terms. This offers additional certainty regarding funding beyond the initial 364-day extension.

EPD/EPDU 8-K: Material Agreements

Summary

Enterprise Products Partners L.P. (EPD), through its operating subsidiary Enterprise Products Operating LLC (EPO), announced a significant amendment and extension to its 364-day revolving credit agreement. This amendment, effective September 14, 2016, extends the maturity date and maintains access to a substantial credit facility, demonstrating the company's ongoing commitment to robust liquidity management. The agreement allows EPO to borrow up to $1.5 billion, with an option to increase this to $1.7 billion under specific conditions, providing financial flexibility for operational needs and potential growth initiatives. Key terms of the Second Amendment include setting a new base date for Material Adverse Change (MAC) clauses and incorporating provisions related to recent European bail-in legislation. This move signals EPD's proactive approach to managing its financial obligations and adapting to evolving regulatory landscapes. The extension of this credit line is crucial for investor confidence, assuring them of the company's ability to meet its short-term financial commitments and potentially fund future projects without immediate disruption.

Key Highlights

1Enterprise Products Operating LLC (EPO), EPD's operating subsidiary, entered into a Second Amendment to its 364-day Revolving Credit Agreement.
2The credit facility has a borrowing capacity of up to $1.5 billion, with an option to increase it to $1.7 billion.
3The maturity date of the credit agreement has been extended by 364 days from September 14, 2016.
4A "Term-Out" option allows for a further extension of one year and 364 days from September 14, 2016, under specified conditions.
5The amendment sets December 31, 2015, as the base date for determining a Material Adverse Change (MAC).
6The agreement incorporates terms related to recent bail-in legislation affecting lenders in the European Union, Iceland, Liechtenstein, or Norway.
7The company issued a press release on September 14, 2016, to announce the execution of this Second Amendment.

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Material Agreement (Sep 14, 2016)

Summary

Key Highlights

Frequently Asked Questions