Enterprise prices $2.75B of senior unsecured notes

Enterprise Products Partners LP

Enterprise Products Partners LP (NYSE: EPD) reports that its operating subsidiary, Enterprise Products Operating LLC (EPO), has priced a public offering of $2.75 billion of senior unsecured notes comprised of $800 million due on Oct. 15, 2019 (Senior Notes LL), $1.15 billion due on Feb. 15, 2025 (Senior Notes MM), $400 million due on March 15, 2044 (reopened Senior Notes II), and $400 million due on Oct. 15, 2054 (Senior Notes NN).

The company expects to use the net proceeds of this offering for the repayment of debt, including the repayment of amounts outstanding under its 364-day credit agreement or commercial paper program, and the repayment of amounts outstanding on the maturity of EPO’s $650 million principal amount of Senior Notes G due Oct. 15, and for general company purposes.

The Senior Notes LL will be issued at 99.981% of their principal amount and will have a fixed-rate interest coupon of 2.55%. The Senior Notes MM will be issued at 99.681% of their principal amount and will have a fixed-rate interest coupon of 3.75%. The reopened Senior Notes II will have identical terms, and will be fungible with and part of a single series of senior debt securities together with the $1 billion of Senior Notes II issued on March 18, 2013.

The Senior Notes II will be issued at 100.836% of their principal amount and will have a fixed-rate interest coupon of 4.85%. The Senior Notes NN will be issued at 98.356% of their principal amount and will have a fixed-rate interest coupon of 4.95%. The expected settlement date for the offering is Oct. 14. Enterprise Products Partners will guarantee the senior notes through an unconditional guarantee on an unsecured and unsubordinated basis.

Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Inc., DNB Markets Inc., JP Morgan Securities LLC, Morgan Stanley, RBS Securities Inc., Scotiabank, and UBS Investment Bank acted as joint book-running managers for the offering.

 

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