Summary
Enterprise Products Partners L.P. (EPD), through its operating subsidiary Enterprise Products Operating LLC (EPO), has entered into two new credit agreements as of March 31, 2023. The first is a 364-day revolving credit agreement with a borrowing capacity of up to $1.5 billion, extendable to $1.7 billion. This agreement replaces a similar facility that was set to mature in September 2023 and provides EPO with flexibility for working capital, capital expenditures, and acquisitions. The second agreement is a five-year multi-year revolving credit facility totaling $2.7 billion, with an option to increase to $3.2 billion. This replaces an existing credit agreement and extends the maturity to March 31, 2028, also offering funds for general corporate purposes. Both agreements are unsecured but guaranteed by EPD, and feature covenants that could restrict distributions to the partnership if an event of default occurs. As of the filing date, no borrowings were outstanding under these new facilities.
Key Highlights
- 1EPD's operating subsidiary, EPO, secured a new 364-day revolving credit facility of up to $1.5 billion, with potential for a $200 million increase.
- 2A new five-year multi-year revolving credit facility totaling $2.7 billion was also established, with an option to increase to $3.2 billion.
- 3These new credit agreements replace existing facilities, providing EPD with updated financing terms and extended maturity dates.
- 4Proceeds from both facilities can be used for working capital, capital expenditures, acquisitions, and other general company purposes.
- 5Both credit agreements are unsecured but are guaranteed by Enterprise Products Partners L.P.
- 6Customary covenants are included, with provisions that could restrict EPO's ability to pay cash distributions to the Partnership in the event of a default.
- 7As of March 31, 2023, there were no outstanding borrowings under these newly established credit facilities.