Summary
Enterprise Products Partners L.P. (EPD), through its operating subsidiary Enterprise Products Operating LLC (EPO), has entered into two new credit agreements, replacing existing facilities. The first is a 364-Day Revolving Credit Agreement providing up to $1.5 billion, with an option to increase to $1.7 billion. This facility, maturing on September 6, 2022, can be extended by an additional year as a non-revolving term loan. The second is a Multi-Year Revolving Credit Agreement for up to $3.0 billion, with an option to increase to $3.5 billion, maturing in five years on September 7, 2026. This agreement can be extended for up to two additional one-year periods. Both agreements are unsecured, guaranteed by the Partnership, and their terms, including interest rates and facility fees, are subject to EPO's senior debt credit rating. Proceeds from both facilities can be used for working capital, capital expenditures, acquisitions, and other general corporate purposes.
Key Highlights
- 1Entered into a new $1.5 billion (potentially $1.7 billion) 364-day revolving credit facility, replacing a similar prior agreement.
- 2Established a new $3.0 billion (potentially $3.5 billion) five-year revolving credit facility, replacing an older agreement.
- 3Both new credit facilities are unsecured but guaranteed by Enterprise Products Partners L.P.
- 4Borrowings under the 364-day facility mature on September 6, 2022, with an option for a one-year extension.
- 5Borrowings under the multi-year facility mature on September 7, 2026, with options for two one-year extensions.
- 6Proceeds from these credit facilities can be used for working capital, capital expenditures, acquisitions, and other general company purposes.
- 7The cost (interest rate and facility fees) of these credit facilities will vary based on EPD's senior debt credit rating.