What is the primary purpose of these new credit agreements?

The primary purpose of these new credit agreements is to provide Enterprise Products Operating LLC (EPO) with enhanced financial flexibility and liquidity. The 364-day agreement offers short-term funding, while the five-year agreement provides longer-term backstop and general corporate funding, supporting working capital needs, capital expenditures, and acquisitions.

Are these new credit facilities secured by collateral?

No, both the 364-Day Revolving Credit Agreement and the Multi-Year Revolving Credit Agreement are unsecured. However, EPO's obligations under these agreements are guaranteed by the parent company, Enterprise Products Partners L.P. (EPD).

What is the total borrowing capacity available to EPD under these agreements?

Under the 364-Day Credit Agreement, EPO can borrow up to $1.5 billion, with the option to increase it to $1.7 billion. Under the Multi-Year Credit Agreement, the initial capacity is $4.0 billion, which can be increased to $4.5 billion. In total, EPD has access to up to $6.2 billion in borrowing capacity under these two agreements.

What happens to the existing credit agreements?

The new 364-Day Revolving Credit Agreement replaces EPO's existing 364-day revolving credit agreement dated September 30, 2014. Similarly, the new Multi-Year Revolving Credit Agreement replaces EPO's existing five-year revolving credit agreement dated September 7, 2011.

EPD/EPDU 8-K: Material Agreements & Financial Events

Summary

Enterprise Products Partners L.P. (EPD), through its operating subsidiary Enterprise Products Operating LLC (EPO), has entered into two new credit agreements designed to enhance its financial flexibility. The first is a 364-Day Revolving Credit Agreement with a borrowing capacity of up to $1.5 billion, potentially expandable to $1.7 billion. This agreement replaces a prior 364-day facility and provides short-term funding for working capital, capital expenditures, acquisitions, and general corporate purposes. The second agreement is a five-year Revolving Credit Agreement with a base capacity of $4.0 billion, which can be increased to $4.5 billion. This facility is intended to serve as a backstop for commercial paper issuances, in addition to supporting working capital, capital expenditures, and acquisitions. Both credit agreements are unsecured but guaranteed by EPD, underscoring the parent company's commitment to supporting its operating subsidiary's liquidity needs. These agreements provide EPD with substantial, flexible borrowing capacity for the near and medium term.

Key Highlights

1EPO entered into a new 364-Day Revolving Credit Agreement with a capacity of $1.5 billion, expandable to $1.7 billion.
2EPO also entered into a new five-year Revolving Credit Agreement with a capacity of $4.0 billion, expandable to $4.5 billion.
3The 364-Day Credit Agreement replaces a previous 364-day facility and matures on September 12, 2018, with an option for a one-year extension into term loans.
4The Multi-Year Credit Agreement matures on September 13, 2022, and can be extended twice for one-year periods.
5Proceeds from both agreements can be used for working capital, capital expenditures, acquisitions, and general corporate purposes; the multi-year agreement also serves as a commercial paper backstop.
6Both credit facilities are unsecured but guaranteed by Enterprise Products Partners L.P. (EPD).
7The credit agreements contain customary covenants and events of default, and restrict distributions to EPD if an event of default occurs.

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Material Agreement (Sep 15, 2017)

Summary

Key Highlights

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