What securities were issued and who guarantees them?

EPO issued $1.1 billion of 4.95% senior notes due 2035 and $1.4 billion of 5.55% senior notes due 2055. Enterprise Products Partners L.P. fully and unconditionally guarantees the notes on an unsecured and unsubordinated basis.

At what prices were the notes sold?

The 2035 notes were priced at 99.400% of principal amount and the 2055 notes at 99.663%, meaning the issuer receives slightly less than face value before underwriting fees, with the discount effectively adding to the yield.

Why is the company issuing this debt?

The company plans to use net proceeds for general corporate purposes, including growth capital investments, and to repay debt, including all or part of the $1.15 billion 3.75% Senior Notes MM maturing in February 2025.

When does the offering close and what is the outstanding debt load?

The offering is expected to close on August 8, 2024. As of March 31, 2024, pro forma for the offering, the issuer had about $31.1 billion of consolidated principal debt, including $28.8 billion of senior notes and $2.3 billion of junior subordinated notes.

Does this filing change distributions or guidance?

No. The filing is a debt offering disclosure and does not announce any changes to distributions, earnings guidance, or operations.

EPD/EPDU 8-K SEC Disclosure

01—Abstract

Summary

Summary of the 8-K filed August 5, 2024. Cited figures are marked; the original filing is the authoritative source.

Enterprise Products Partners L.P.

(NYSE: EPD) disclosed in this August 5, 2024 Form 8-K that its operating subsidiary, Enterprise Products Operating LLC (EPO), priced a $2.5 billion^a senior notes offering on August 1, 2024, comprising $1.1 billion of 4.95% senior notes due 2035 (issued at 99.400% of par) and $1.4 billion of 5.55% senior notes due 2055 (issued at 99.663% of par). The notes are guaranteed on an unsecured, unsubordinated basis by the Partnership, and closing is scheduled for August 8, 2024. The offering was made under an effective Form S-3 shelf registration and is governed by the Thirty-Ninth Supplemental Indenture with U.S. Bank Trust Company as series trustee.

The stated use of proceeds is general company purposes, including growth capital investments, and repayment of debt, specifically all or a portion of EPO's $1.15 billion^b 3.75% Senior Notes MM maturing in February 2025. Because some underwriters or their affiliates may hold the MM notes being repaid, they may receive a substantial portion of the net proceeds. This refinancing approach extends the company's maturity profile by roughly a decade on the new tranches while addressing a near-term maturity, which is generally viewed as a credit-positive, prudent liability management step for an investment-grade midstream partnership.

For investors, the key takeaways are the modest pricing discounts, the relatively wide spread between the 2035 and 2055 coupons, and the disclosed capital structure. As of March 31, 2024, pro forma for this offering, the issuer had approximately $31.1 billion^c of consolidated principal indebtedness, including $28.8 billion of senior notes and $2.3 billion of junior subordinated notes, with the Partnership itself holding no direct indebtedness beyond its guarantees. The filing is a routine debt issuance disclosure and does not announce changes to distributions, guidance, or operations.

02—Key points

Key Highlights

Priced $2.5 billion of senior notes on August 1, 2024, through EPO, guaranteed by Enterprise Products Partners L.P.
$1.1 billion 4.95% senior notes due February 15, 2035, issued at 99.400% of principal amount.
$1.4 billion 5.55% senior notes due February 16, 2055, issued at 99.663% of principal amount.
Proceeds fund general corporate purposes, including growth capital, and repayment of the $1.15 billion 3.75% Senior Notes MM due February 2025.
Some underwriters or affiliates may hold the MM notes being repaid and could receive a substantial share of net proceeds, a related-party disclosure worth noting.
Pro forma consolidated indebtedness of approximately $31.1 billion at March 31, 2024; notes are unsecured and unsubordinated.
Closing scheduled for August 8, 2024, subject to customary conditions; the offering is registered under an effective Form S-3 shelf.

03—Questions

Frequently Asked Questions

What securities were issued and who guarantees them?
EPO issued $1.1 billion of 4.95% senior notes due 2035 and $1.4 billion of 5.55% senior notes due 2055. Enterprise Products Partners L.P. fully and unconditionally guarantees the notes on an unsecured and unsubordinated basis.
At what prices were the notes sold?
The 2035 notes were priced at 99.400% of principal amount and the 2055 notes at 99.663%, meaning the issuer receives slightly less than face value before underwriting fees, with the discount effectively adding to the yield.
Why is the company issuing this debt?
The company plans to use net proceeds for general corporate purposes, including growth capital investments, and to repay debt, including all or part of the $1.15 billion 3.75% Senior Notes MM maturing in February 2025.
When does the offering close and what is the outstanding debt load?
The offering is expected to close on August 8, 2024. As of March 31, 2024, pro forma for the offering, the issuer had about $31.1 billion of consolidated principal debt, including $28.8 billion of senior notes and $2.3 billion of junior subordinated notes.
Does this filing change distributions or guidance?
No. The filing is a debt offering disclosure and does not announce any changes to distributions, earnings guidance, or operations.

04—Continue

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