Enterprise prices $1.25B of senior unsecured notes

Enterprise Products Partners LP’s (NYSE: EPD) operating subsidiary, Enterprise Products Operating LLC (EPO), has priced a public offering of $1.25 billion of senior unsecured notes comprising $575 million due April 15, 2021 (Senior Notes RR); $575 million due February 15, 2027 (Senior Notes SS); and $100 million due May 15, 2046 (Reopened Senior Notes QQ).

Enterprise expects to use the net proceeds of this offering for the repayment of debt, including the repayment of amounts outstanding under its commercial paper program (which the company used to repay amounts outstanding on the maturity of EPO’s $750 million principal amount of Senior Notes AA due February 2016), and for general company purposes.

Senior Notes RR will be issued at 99.898% of their principal amount and will have a fixed-rate interest coupon of 2.85%. Senior Notes SS will be issued at 99.760% of their principal amount and will have a fixed-rate interest coupon of 3.95%. The Reopened Senior Notes QQ, which have a fixed-rate interest coupon of 4.90%, will be issued at 95.516% of their principal amount and will have identical terms, be fungible with and be a part of a single series of senior debt securities together with the $875 million of Senior Notes QQ issued on May 7. The expected settlement date for the offering is April 13. Enterprise Products Partners will guarantee the senior notes through an unconditional guarantee on an unsecured and unsubordinated basis.

JP Morgan Securities LLC; Merrill Lynch; Pierce, Fenner & Smith Inc.; Citigroup Global Markets Inc.; Deutsche Bank Securities Inc.; DNB Markets Inc.; and Scotia Capital (USA) Inc. acted as joint book-running managers for the offering.


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