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ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Material Agreement (Sep 15, 2021)

Filed September 15, 2021For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) announced the successful completion of a public offering of $1.0 billion in aggregate principal amount of Enterprise Products Operating LLC's (EPO) 3.300% senior notes due 2053. These notes are guaranteed by the Partnership on an unsecured and unsubordinated basis. This offering expands the company's long-term debt maturity profile with notes that mature in February 2053, bearing a fixed interest rate of 3.300% per annum. The issuance of these notes, which were registered under the Securities Act of 1933, allows EPD to access capital for its ongoing operations and strategic initiatives. The structure of the offering, including the redemption provisions and maturity date, provides a predictable cost of capital for the partnership over the next three decades. Investors can note the inclusion of a "make-whole" premium redemption option prior to August 15, 2052, and a par redemption thereafter, indicating flexibility for the issuer.

Key Highlights

  • 1EPD completed a $1.0 billion public offering of 3.300% senior notes due 2053 issued by Enterprise Products Operating LLC.
  • 2The new notes are guaranteed by Enterprise Products Partners L.P. on an unsecured and unsubordinated basis.
  • 3The offering increases EPD's long-term debt maturity profile, with notes maturing in February 2053.
  • 4The notes bear a fixed interest rate of 3.300% per annum, payable semi-annually.
  • 5The issuance was made under a registration statement previously filed with the SEC.
  • 6EPO has the option to redeem the notes prior to maturity, with a make-whole premium before August 15, 2052, and at par thereafter.

Frequently Asked Questions

The primary purpose of this debt issuance is to access capital, likely for general corporate purposes, refinancing existing debt, or funding ongoing operational and growth initiatives. It also serves to extend the company's debt maturity profile.

The new senior notes have a fixed interest rate of 3.300% per annum and mature on February 15, 2053. Interest payments are scheduled for February 15 and August 15 of each year, commencing February 15, 2022.

Yes, Enterprise Products Operating LLC has the option to redeem some or all of the notes. Prior to August 15, 2052 (the "Par Call Date"), redemption would include a make-whole premium. On or after the Par Call Date, the notes can be redeemed at 100% of the principal amount, plus accrued and unpaid interest.

The guarantee from Enterprise Products Partners L.P. on an unsecured and unsubordinated basis means that the creditworthiness of the Partnership underpins the value and repayment of these notes, providing an additional layer of security for the noteholders.