Summary
Enterprise Products Partners L.P. (EPD) announced a significant debt offering on January 6, 2020, issuing $3.0 billion in aggregate principal amount of senior notes through its subsidiary, Enterprise Products Operating LLC (EPO). The offering comprises three tranches: $1.0 billion of 2.800% senior notes due 2030, $1.0 billion of 3.700% senior notes due 2051, and $1.0 billion of 3.950% senior notes due 2060. EPD, the parent company, guarantees these notes on an unsecured and unsubordinated basis. The primary purpose of this substantial capital raise is to strengthen the company's balance sheet by repaying existing debt, including $500 million of Senior Notes due January 2020 and $1.0 billion of Senior Notes due September 2020, as well as reducing amounts outstanding under its commercial paper program. The remaining proceeds will be allocated to general corporate purposes, including organic growth capital expenditures. The closing of this offering is expected on January 15, 2020.
Key Highlights
- 1EPD is raising $3.0 billion in new debt through its subsidiary EPO.
- 2The offering includes three tranches of senior notes with varying maturities: 2030, 2051, and 2060.
- 3The senior notes carry coupon rates of 2.800%, 3.700%, and 3.950% respectively.
- 4The EPD parent company is providing an unsecured and unsubordinated guarantee for the notes.
- 5Proceeds will be used primarily to repay existing debt, including $1.5 billion in maturing senior notes.
- 6The offering will also fund general corporate purposes and organic growth capital expenditures.
- 7The closing of the new debt issuance is scheduled for January 15, 2020.