Summary
Enterprise Products Partners L.P. (EPD) announced the execution of a new 364-Day Revolving Credit Agreement by its operating subsidiary, Enterprise Products Operating LLC (EPO). This new agreement, effective September 12, 2018, increases the aggregate borrowing capacity to $2.0 billion, with an option to extend to $2.2 billion, up from the previous $1.5 billion facility. The agreement has a term of 364 days and replaces the prior credit facility which matured on September 12, 2018. Proceeds can be used for general corporate purposes including working capital, capital expenditures, and acquisitions. The company also disclosed a Separation Agreement with its former Senior Vice President and Chief Financial Officer, Bryan F. Bulawa. The agreement includes a cash payment of $4.8 million and up to 18 months of medical benefits in exchange for non-disclosure, non-solicitation, and waiver of certain claims. This separation was effective August 24, 2018, and the agreement was finalized on September 11, 2018.
Key Highlights
- 1New $2.0 billion (extendable to $2.2 billion) 364-Day Revolving Credit Agreement entered into by EPO, replacing a $1.5 billion facility.
- 2Increased borrowing capacity provides greater financial flexibility for working capital, capital expenditures, and acquisitions.
- 3The new credit agreement matures on September 11, 2019, with an option to extend into non-revolving term loans for an additional year.
- 4The credit facility is unsecured but guaranteed by Enterprise Products Partners L.P. (EPD).
- 5Covenants in the credit agreement include restrictions on distributions if an event of default occurs.
- 6Separation Agreement reached with former CFO Bryan F. Bulawa, involving a $4.8 million cash payment and medical benefits.
- 7The former CFO's departure was not due to disagreements regarding business operations, policies, or practices.