What is the purpose of the new 364-Day Revolving Credit Agreement?

The new 364-Day Revolving Credit Agreement, with a borrowing capacity of up to $1.5 billion (potentially increasing to $1.7 billion), is intended to provide Enterprise Products Operating LLC (EPO) with financial flexibility for working capital needs, capital expenditures, acquisitions, and other general corporate purposes. It replaces a similar, expiring credit facility.

What are the key terms of the amended Multi-Year Revolving Credit Agreement?

The Multi-Year Revolving Credit Agreement's maturity date has been extended by two years, from March 31, 2028, to March 28, 2030. The agreement also includes provisions for further one-year extensions, subject to lender consent, and maintains EPO's option to increase the total borrowing capacity by up to $500 million.

Are these new credit facilities secured by collateral?

No, neither the new 364-Day Revolving Credit Agreement nor the amended Multi-Year Revolving Credit Agreement are secured by any collateral. However, Enterprise Products Partners L.P. has provided a guaranty for EPO's obligations under both agreements.

Are there any restrictions on EPO's ability to pay distributions due to these agreements?

Yes, the 364-Day Credit Agreement contains covenants that restrict EPO's ability to pay cash distributions to the Partnership if an event of default has occurred and is continuing, or if such distribution would result in an event of default.

EPD/EPDU 8-K: Material Agreements & Financial Events

Summary

Enterprise Products Partners L.P. (EPD) announced significant updates to its credit facilities through its operating subsidiary, Enterprise Products Operating LLC (EPO). The company has entered into a new $1.5 billion 364-Day Revolving Credit Agreement, replacing its previous facility of the same type. This new agreement provides flexible borrowing capacity for working capital, capital expenditures, and acquisitions, with an option to increase the facility by $200 million under certain conditions. The debt is guaranteed by the Partnership but remains unsecured. Furthermore, EPD has extended the maturity date of its larger, multi-year revolving credit facility. This amendment pushes the maturity from March 31, 2028, to March 28, 2030, offering enhanced long-term financial flexibility. This facility also has an option for further one-year extensions with lender consent and can be increased by up to $500 million. These actions demonstrate proactive management of the company's liquidity and debt structure, providing a stable financial foundation for ongoing operations and strategic initiatives.

Key Highlights

1Entered into a new $1.5 billion 364-Day Revolving Credit Agreement for EPO, replacing the prior agreement with the same name.
2The new 364-day credit facility has a term of 364 days, maturing on March 27, 2026, with an option to convert outstanding balances to one-year term loans.
3Borrowing capacity under the 364-day facility can be increased by up to $200 million, bringing the potential total to $1.7 billion.
4The proceeds from the 364-day credit agreement can be used for working capital, capital expenditures, acquisitions, and other corporate purposes.
5Amended the Multi-Year Revolving Credit Agreement, extending its maturity date from March 31, 2028, to March 28, 2030.
6The Multi-Year Credit Agreement has an optional extension feature for up to two additional one-year periods, subject to lender approval.
7Both credit facilities are guaranteed by Enterprise Products Partners L.P. but are not secured by collateral.

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Material Agreement (Mar 28, 2025)

Summary

Key Highlights

Frequently Asked Questions