Summary
Enterprise Products Partners L.P. (EPD), through its operating subsidiary Enterprise Products Operating LLC (EPO), has updated its credit facilities. The company entered into a new 364-Day Revolving Credit Agreement, providing up to $1.5 billion in borrowing capacity, which can be extended to $1.7 billion. This new agreement replaces a prior 364-day facility and is primarily for working capital, capital expenditures, acquisitions, and other general corporate purposes. The facility matures in September 2020 but offers the option to extend into term loans for an additional year. In addition to the short-term facility, EPD amended its Multi-Year Revolving Credit Agreement, reducing the borrowing capacity from $4.0 billion to $3.5 billion, but extending the maturity date to September 2024. This amendment provides a longer-term financial runway. As of the filing date, EPO had no outstanding borrowings under either agreement and reported approximately $5.8 billion in consolidated liquidity, comprising available credit and cash.
Key Highlights
- 1EPD's operating subsidiary (EPO) secured a new 364-Day Revolving Credit Agreement with a capacity of $1.5 billion, potentially expandable to $1.7 billion.
- 2The new 364-day facility replaces a prior agreement and has a maturity date of September 8, 2020, with an option to extend into a one-year term loan.
- 3EPO amended its Multi-Year Revolving Credit Agreement, reducing its capacity to $3.5 billion from $4.0 billion, but extending the maturity to September 10, 2024.
- 4Proceeds from the 364-day credit facility can be used for working capital, capital expenditures, acquisitions, and other general corporate purposes.
- 5The obligations under the 364-day credit agreement are guaranteed by Enterprise Products Partners L.P. and are unsecured.
- 6As of September 10, 2019, EPO had no borrowings outstanding under either credit agreement and maintained a consolidated liquidity of approximately $5.8 billion.
- 7Covenants in the credit agreements may restrict EPO's ability to pay cash distributions to the Partnership if an event of default occurs.