8-KMaterial AgreementsCorporate ChangesExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Material Agreement (Dec 1, 2017)

Filed December 1, 2017For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) has filed an 8-K report detailing two significant events. Firstly, on December 1, 2017, the partnership entered into an equity distribution agreement with a syndicate of financial institutions, allowing it to sell up to $2.54 billion of common units. This agreement provides EPD with flexibility to raise capital through various market transactions, including ordinary broker transactions or block trades, potentially to fund growth initiatives or manage its balance sheet. Secondly, the partnership's general partner executed an amendment to its Limited Partnership Agreement on November 28, 2017. This amendment addresses changes to the Internal Revenue Code enacted by the Bipartisan Budget Act of 2015, specifically concerning partnership audit and adjustment procedures. Investors should note that this amendment primarily relates to the administrative and tax compliance aspects of the partnership structure rather than a change in business operations or financial performance.

Key Highlights

  • 1Entered into an Equity Distribution Agreement with a syndicate of managers to offer and sell up to $2.5385 billion of common units.
  • 2Sales of common units can be made through ordinary brokers' transactions on the NYSE, block transactions, or negotiated sales to managers as principal.
  • 3The Equity Distribution Agreement is supported by an effective registration statement on Form S-3, indicating readiness for potential equity offerings.
  • 4Amended the Partnership Agreement to comply with new IRS audit and adjustment procedures introduced by the Bipartisan Budget Act of 2015.
  • 5The amendment to the Partnership Agreement was executed by the General Partner, Enterprise Products Holdings LLC.
  • 6This 8-K filing also includes legal opinions related to the registration statement and tax matters.

Frequently Asked Questions

The Equity Distribution Agreement allows Enterprise Products Partners L.P. to potentially raise up to $2.5385 billion by issuing and selling its common units in the future. This provides the partnership with financial flexibility to fund strategic initiatives, capital expenditures, debt reduction, or for general corporate purposes.

The units will be sold through the managers (a syndicate of investment banks) via ordinary broker transactions on the New York Stock Exchange at prevailing market prices, in block transactions, or through negotiated sales where a manager buys units as principal. This offers flexibility in how the capital is raised.

The Partnership Agreement was amended to comply with new federal tax laws, specifically the Bipartisan Budget Act of 2015, which introduced updated procedures for partnership audits and adjustments. This is a compliance-related update to align with regulatory changes.

No, the agreement allows EPD to sell units 'from time to time' up to that aggregate amount. It does not obligate the partnership to issue any units. This is a shelf registration allowing for future opportunistic capital raises if deemed necessary by management.