Summary
Enterprise Products Partners L.P. (EPD), through its operating subsidiary EPO, has entered into a new 364-Day Revolving Credit Agreement, establishing a borrowing capacity of up to $1.5 billion, with an option to increase it to $1.7 billion. This new agreement replaces a similar facility that matured on September 8, 2020, and will mature on September 7, 2021. The proceeds can be used for general corporate purposes, including working capital, capital expenditures, and acquisitions. The Partnership provides a guarantee for EPO's obligations under this unsecured facility.
Key Highlights
- 1EPD's operating subsidiary (EPO) secured a new $1.5 billion, 364-day revolving credit facility, with potential to increase to $1.7 billion.
- 2The new credit agreement replaces a previous 364-day facility that matured on September 8, 2020.
- 3Proceeds from the new facility are available for working capital, capital expenditures, acquisitions, and other general corporate purposes.
- 4The credit facility is unsecured, with the Partnership providing a guarantee for EPO's obligations.
- 5The new agreement matures on September 7, 2021, with an option to extend into a term loan for an additional year.
- 6The company also terminated its April 2020 364-day revolving credit agreement, which provided an incremental $1.0 billion capacity, as it is no longer needed following recent senior notes offerings.
- 7As of September 11, 2020, EPO has no borrowings outstanding under its revolving credit facilities.
Frequently Asked Questions
The new credit agreement provides Enterprise Products Operating LLC (EPO), EPD's operating subsidiary, with borrowing capacity for general corporate purposes. This includes working capital needs, capital expenditures, acquisitions, and other company initiatives, enhancing financial flexibility.
The new 364-Day Revolving Credit Agreement provides a borrowing capacity of up to $1.5 billion, with the option to increase this to $1.7 billion under certain conditions. The agreement has a term of 364 days, maturing on September 7, 2021, and includes an option to extend into a one-year term loan.
The new credit facility is not secured by any collateral. However, Enterprise Products Partners L.P. (EPD) has provided a Guaranty Agreement, meaning the Partnership guarantees EPO's obligations under the credit agreement.
EPD terminated the April 2020 364-day revolving credit agreement, which had a $1.0 billion capacity, because it was deemed no longer necessary. This decision followed the successful completion of the company's August 2020 senior notes offering, which raised $1.25 billion, providing sufficient liquidity.