Summary
Enterprise Products Partners L.P. (EPD) announced on September 7, 2021, an underwritten public offering of $1.0 billion principal amount of senior notes due 2053, issued by its subsidiary Enterprise Products Operating LLC (EPO). These notes carry a 3.300% interest rate and are guaranteed on an unsecured and unsubordinated basis by EPD. The offering is expected to close on September 15, 2021. The net proceeds from this offering are intended for general corporate purposes, including capital investments, and to repay existing debt. Specifically, the funds may be used to partially retire EPO's 3.50% Senior Notes due 2022 and/or its 4.05% Senior Notes due 2022. This move signals a proactive approach to managing the company's debt structure and funding future growth initiatives.
Key Highlights
- 1EPD to issue $1.0 billion in 3.300% senior notes due 2053 through its subsidiary EPO.
- 2The new notes will be guaranteed by Enterprise Products Partners L.P.
- 3The offering is scheduled to close on September 15, 2021.
- 4Proceeds will be used for general corporate purposes, including growth capital investments.
- 5A portion of the proceeds will be allocated to repaying existing debt, specifically targeting 2022 senior notes (3.50% and/or 4.05%).
- 6The offering is registered under the Securities Act of 1933 via a Form S-3 registration statement.