Summary
Enterprise Products Partners L.P. (EPD) announced on October 3, 2018, through its subsidiary Enterprise Products Operating LLC (EPO), the public offering of $3.75 billion in aggregate principal amount of senior notes. These notes are divided into three tranches: $750.0 million of 3.50% senior notes due 2022, $1.0 billion of 4.15% senior notes due 2028, and $1.25 billion of 4.80% senior notes due 2049. The notes are guaranteed by the Partnership on an unsecured and unsubordinated basis. The net proceeds from this offering are intended to be used for debt repayment, including commercial paper, and general corporate purposes, such as organic growth capital expenditures.
Key Highlights
- 1EPD's subsidiary, EPO, is issuing $3.75 billion in aggregate principal amount of senior notes.
- 2The notes are structured into three maturities: 2022 ($750M), 2028 ($1B), and 2049 ($1.25B).
- 3The Partnership (EPD) is providing an unsecured and unsubordinated guarantee for the notes.
- 4The net proceeds are earmarked for debt repayment, including commercial paper, and general corporate purposes, potentially funding organic growth.
- 5The offering is registered under the Securities Act of 1933, and the closing is scheduled for October 11, 2018.
- 6Affiliates of the underwriters may benefit from the repayment of commercial paper, as they may hold these notes.
- 7The transaction involves multiple legal entities: Enterprise Products Partners L.P. (Partnership), Enterprise Products OLPGP, Inc. (EPOGP), and Enterprise Products Operating LLC (EPO).
Frequently Asked Questions
The primary purpose of the offering is to repay existing debt, including amounts outstanding under EPO's commercial paper program. Additionally, a portion of the proceeds may be used for general company purposes, which can include funding organic growth capital expenditures.
The offering comprises three tranches: $750.0 million of 3.50% senior notes due 2022, $1.0 billion of 4.15% senior notes due 2028, and $1.25 billion of 4.80% senior notes due 2049. The notes are guaranteed by Enterprise Products Partners L.P.
The senior notes are being issued by Enterprise Products Operating LLC (EPO), a subsidiary of Enterprise Products Partners L.P. The Partnership (EPD) itself is providing an unsecured and unsubordinated guarantee for these notes.
Yes, affiliates of some of the underwriters may hold EPO's commercial paper notes that are to be repaid with proceeds from this offering. Consequently, these affiliates could receive a significant portion of the net proceeds. Additionally, the underwriters and their affiliates have a history of providing financial advisory and investment banking services to EPD and its affiliates.