Summary
Enterprise Products Partners L.P. (EPD), through its operating subsidiary Enterprise Products Operating LLC (EPO), has entered into a new 364-Day Revolving Credit Agreement, replacing a prior similar agreement that matured on September 6, 2022. This new agreement provides EPO with borrowing capacity of up to $1.5 billion, with an option to increase it to $1.7 billion under certain conditions. The facility is for a term of 364 days, with an option to extend the outstanding balance as non-revolving term loans for an additional year. Proceeds can be used for general corporate purposes including working capital, capital expenditures, and acquisitions. The credit facility is unsecured but guaranteed by the parent partnership, EPD. Borrowing costs are at a variable interest rate and include a facility fee, with both rates tied to EPO's senior debt credit rating. The agreement contains standard covenants and events of default, which could lead to acceleration of the debt and restrictions on dividend payments to the partnership if an event of default occurs and continues.
Key Highlights
- 1Enterprise Products Operating LLC (EPO) secured a new 364-Day Revolving Credit Agreement on September 6, 2022.
- 2The agreement provides a borrowing capacity of $1.5 billion, potentially expandable to $1.7 billion.
- 3The credit facility has a maturity of 364 days from the agreement date, with an option for a one-year extension as term loans.
- 4Loan proceeds can be used for working capital, capital expenditures, acquisitions, and other general corporate purposes.
- 5The debt is unsecured but guaranteed by the parent company, Enterprise Products Partners L.P. (EPD).
- 6Interest rates are variable and influenced by EPO's senior debt credit rating, alongside a facility fee.