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. This agreement replaces a similar facility that matured on March 27, 2026, and provides EPO with access to up to $1.5 billion, with a potential to increase this by $200 million to $1.7 billion under certain conditions. The credit facility is unsecured but is guaranteed by EPD. The proceeds can be used for general corporate purposes including working capital, capital expenditures, and acquisitions. The new credit agreement matures on March 26, 2027, with an option for EPO to extend the entire outstanding balance as a non-revolving term loan for an additional year, maturing on March 26, 2028. The terms of the agreement include variable interest rates, facility fees based on EPO's senior debt credit rating, and customary covenants. Importantly, the agreement contains provisions that could restrict EPO's ability to pay cash distributions if an event of default occurs and continues.
Key Highlights
- 1EPD's operating subsidiary, EPO, secured a new 364-Day Revolving Credit Agreement totaling $1.5 billion, with potential for an upsize to $1.7 billion.
- 2The new agreement replaces a previous 364-day facility that matured on March 27, 2026.
- 3Proceeds from the credit facility are designated for working capital, capital expenditures, acquisitions, and other general corporate purposes.
- 4The credit facility is unsecured, but EPD has provided a Guaranty Agreement, making it a guaranteed obligation.
- 5The primary maturity date for the new credit facility is March 26, 2027, with an option to extend as a term loan until March 26, 2028.
- 6Borrowing costs will be based on variable interest rates and facility fees, influenced by EPO's senior debt credit rating.
- 7The agreement includes covenants that could limit EPO's ability to pay distributions to partners in the event of a default.