What is the total amount of debt raised by EPD in this filing?

EPD raised a total of $2.7 billion through these offerings: $700 million in junior subordinated notes and $2.0 billion in senior notes.

What are the implications of the junior subordinated notes allowing for interest deferral?

The ability to defer interest payments on the junior subordinated notes means that EPD may not pay interest on these notes for up to ten years. During such deferral periods, the company and its subsidiaries are restricted from making distributions on their equity securities and from paying interest or principal on other debt that ranks equally or junior to the subordinated notes. This could impact cash available for distributions to partners and other debt holders.

What is the difference in the guarantees provided for the senior notes versus the subordinated notes?

The senior notes have the benefit of an unsecured and unsubordinated guarantee from Enterprise Products Partners L.P. In contrast, the junior subordinated notes have a guarantee from Enterprise Products Partners L.P. that is also unsecured but is junior and subordinated to other debt obligations.

When do the senior notes mature?

The senior notes have two maturity dates: the 2.800% senior notes due 2021 mature on February 15, 2021, and the 4.250% senior notes due 2048 mature on February 15, 2048.

EPD/EPDU 8-K: Material Agreements

Summary

Enterprise Products Partners L.P. (EPD) announced on February 15, 2018, the completion of two significant debt offerings: a $700 million offering of 5.375% Junior Subordinated Notes due 2078 and a $2.0 billion offering of senior notes, consisting of $750 million of 2.800% notes due 2021 and $1.25 billion of 4.250% notes due 2048. These offerings were conducted under a previously filed registration statement. The junior subordinated notes carry a junior subordinated guarantee from EPD and include provisions allowing for interest payment deferrals under certain conditions, which may restrict distributions and other debt payments. The senior notes are guaranteed on an unsecured and unsubordinated basis by EPD and have varying maturity dates and redemption features. These offerings represent a substantial capital raise for EPD, indicating strategic financing activities. Investors should note the differing risk profiles and covenants associated with the subordinated versus senior debt. The subordinated notes, while offering a higher coupon, come with a junior ranking and deferral options that could impact cash flows to equity holders and other debt. The senior notes provide a lower coupon rate but benefit from unsubordinated guarantees and are scheduled for repayment sooner for the 2021 tranche.

Key Highlights

1Completed a $700 million offering of 5.375% Junior Subordinated Notes due 2078.
2Completed a $2.0 billion offering of senior notes, including $750 million of 2.800% notes due 2021 and $1.25 billion of 4.250% notes due 2048.
3The junior subordinated notes are guaranteed on a junior subordinated basis by Enterprise Products Partners L.P.
4The senior notes are guaranteed on an unsecured and unsubordinated basis by Enterprise Products Partners L.P.
5The junior subordinated notes allow for deferral of interest payments for up to ten years, subject to certain conditions.
6Deferral of interest on subordinated notes may restrict EPD and its subsidiaries from paying distributions on equity or servicing other junior/pari passu debt.
7The new notes were registered under a Form S-3 registration statement and issued under supplemental indentures.

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Material Agreement (Feb 15, 2018)

Summary

Key Highlights

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