Summary
Enterprise Products Partners L.P. (EPD) has filed an 8-K report detailing significant financing activities and a change in its transfer agent. The partnership, through its subsidiary EPO, has entered into underwriting agreements for the public offering of $700.0 million in 5.375% Junior Subordinated Notes due 2078 and $2.0 billion in senior notes ($750.0 million of 2.800% notes due 2021 and $1,250.0 million of 4.250% notes due 2048). These offerings are registered under the Securities Act and are expected to close on February 15, 2018. The net proceeds from these offerings are earmarked for the repurchase or redemption of existing subordinated notes, repayment of commercial paper, and general corporate purposes, indicating a strategic move to refinance and manage its debt structure. Furthermore, EPD has announced a change in its transfer agent and distribution reinvestment plan administrator. Following the acquisition of Wells Fargo Shareowner Services by Equiniti Group, EQ Shareowner Services will now handle these functions for EPD's common units. This transition is operational and does not appear to impact the financial or strategic direction of the partnership, but investors should be aware of the new contact for unit-related services.
Key Highlights
- 1EPD and its subsidiary EPO successfully launched offerings for $700 million in junior subordinated notes (5.375% due 2078) and $2.0 billion in senior notes (2.800% due 2021 and 4.250% due 2048) on February 1, 2018.
- 2The proceeds from these offerings are intended for debt management, including the redemption of existing subordinated notes and repayment of commercial paper, as well as general corporate purposes.
- 3The offerings are registered under the Securities Act, with closings scheduled for February 15, 2018.
- 4The junior subordinated notes are guaranteed on an unsecured and junior subordinated basis by EPD.
- 5The senior notes are guaranteed on an unsecured and unsubordinated basis by EPD.
- 6EPD's transfer agent and distribution reinvestment plan administrator has changed from Wells Fargo Shareowner Services to EQ Shareowner Services (an Equiniti Group affiliate) following Equiniti's acquisition of Wells Fargo's division.
- 7The firm engaged major underwriters, including J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Scotia Capital (USA) Inc., for both debt offerings.