Finance & Investing | Debt | Capital Markets
Enterprise Products Partners Prices $2.75B Note Offering
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Enterprise Products Partners L.P. announced 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 October 15, 2019 (Senior Notes LL), $1.15 billion due on February 15, 2025 (Senior Notes MM), $400 million due on March 15, 2044 (reopened Senior Notes II), and $400 million due on October 15, 2054 (Senior Notes NN).
We expect to use the net proceeds of this offering for the repayment of debt, including (i) the repayment of amounts outstanding under our 364-day credit agreement or commercial paper program and (ii) the repayment of amounts outstanding on the maturity of EPO’s $650.0 million principal amount of Senior Notes G due October 15, 2014, and for general company purposes.
The Senior Notes LL will be issued at 99.981 percent of their principal amount and will have a fixed-rate interest coupon of 2.55 percent. The Senior Notes MM will be issued at 99.681 percent of their principal amount and will have a fixed-rate interest coupon of 3.75 percent. The reopened Senior Notes II will have identical terms, be fungible with and be a 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 percent of their principal amount and will have a fixed-rate interest coupon of 4.85 percent. The Senior Notes NN will be issued at 98.356 percent of their principal amount and will have a fixed-rate interest coupon of 4.95 percent. The expected settlement date for the offering is October 14, 2014. Enterprise Products Partners L.P. will guarantee the senior notes through an unconditional guarantee on an unsecured and unsubordinated basis.
Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, DNB Markets, Inc., J.P. Morgan Securities LLC, Morgan Stanley, RBS Securities Inc., Scotiabank and UBS Investment Bank acted as joint book-running managers for the offering.