Enterprise Prices $2.7 Billion Aggregate Principal Amount of Senior Notes and Junior Subordinated Notes
February 01 2018 - 5:29PM
Business Wire
Enterprise Products Partners L.P. (NYSE: EPD) (“Enterprise”)
today announced that its operating subsidiary, Enterprise Products
Operating LLC (“EPO”), has priced public offerings of $2.7 billion
aggregate principal amount of notes comprised of (i) $750 million
principal amount of senior notes due February 15, 2021 (“Senior
Notes TT”), (ii) $1,250 million principal amount of senior notes
due February 15, 2048 (“Senior Notes UU”), and (iii) $700 million
principal amount of junior subordinated notes due February 15, 2078
(“Junior Subordinated Notes F”).
We expect to use the net proceeds of these offerings for the
repayment of debt, including the repayment of amounts outstanding
under our commercial paper program and the repurchase or redemption
of all of the $682.7 million outstanding aggregate principal amount
of EPO’s 7.034% Fixed/Floating Rate Junior Subordinated Notes due
2068, and for general company purposes.
Senior Notes TT will be issued at 99.946% of their principal
amount and will have a fixed-rate interest coupon of 2.800%. Senior
Notes UU will be issued at 99.865% of their principal amount and
will have a fixed-rate interest coupon of 4.250%. Enterprise
Products Partners L.P. will guarantee the senior notes through an
unconditional guarantee on an unsecured and unsubordinated
basis.
The Junior Subordinated Notes F will be redeemable at EPO’s
option, in whole or in part, on one or more occasions, on or after
February 15, 2028 at 100% of their principal amount, plus any
accrued and unpaid interest thereon, and will bear interest at a
fixed rate of 5.375% per year up to, but not including, February
15, 2028. From, and including February 15, 2028, the Junior
Subordinated Notes F will bear interest at a floating rate based on
a three-month LIBOR rate plus 257 basis points (2.57%), reset
quarterly. Enterprise Products Partners L.P. will guarantee the
Junior Subordinated Notes F through an unconditional guarantee on
an unsecured and subordinated basis.
Settlement of each of the offerings is expected to occur on
February 15, 2018.
J.P. Morgan Securities LLC, Deutsche Bank Securities Inc.,
Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Scotia
Capital (USA) Inc. acted as joint book-running managers for each of
the offerings. An investor may obtain a free copy of the
prospectuses as supplemented for each of the offerings by visiting
EDGAR on the SEC website at www.sec.gov. Alternatively, EPO or any
underwriter or dealer participating in this offering will arrange
to send a prospectus as supplemented to an investor if requested by
contacting J.P. Morgan Securities LLC at (212) 834-4533, Deutsche
Bank Securities Inc. at (800) 503-4611, Merrill Lynch, Pierce,
Fenner & Smith Incorporated at (800) 294-1322 or Scotia Capital
(USA) Inc. at (800) 372-3930.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities described in this
press release, nor shall there be any sale of these securities in
any state or jurisdiction in which such an offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such jurisdiction. Each of the offerings
is being made only by means of a prospectus and related prospectus
supplement, which are part of an effective registration
statement.
Enterprise Products Partners L.P. is one of the largest publicly
traded partnerships and a leading North American provider of
midstream energy services to producers and consumers of natural
gas, NGLs, crude oil, refined products and petrochemicals. Our
services include: natural gas gathering, treating, processing,
transportation and storage; NGL transportation, fractionation,
storage, and export and import terminals; crude oil gathering,
transportation, storage, export and terminals; petrochemical and
refined products transportation, storage and terminals; and a
marine transportation business that operates primarily on the
United States inland and Intracoastal Waterway systems. The
partnership’s assets include approximately 50,000 miles of
pipelines; 260 million barrels of storage capacity for NGLs, crude
oil, refined products and petrochemicals; and 14 billion cubic feet
of natural gas storage capacity.
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version on businesswire.com: http://www.businesswire.com/news/home/20180201006648/en/
Enterprise Products Partners L.P.Randy Burkhalter, 713-381-6812
or 866-230-0745Investor RelationsorRick Rainey, 713-381-3635Media
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