Enterprise Products Partners LP announced that its subsidiary Enterprise Products Operating LLC (EPO) priced a public offering of $2.75 billion of senior unsecured notes. The public offering is comprised of:

  • Senior notes LL, totaling $800 million, due on Oct. 15, 2019;
  • Senior notes MM, totaling $1.15 billion, due on Feb. 15, 2025;
  • Reopened senior notes II, totaling $400 million, due on March 15, 2044; and
  • Senior notes NN, totaling $400 million, due on Oct. 15, 2054.

Enterprise expects to use proceeds from the offering to repay debt, including amounts outstanding under its 364-day credit agreement and amounts outstanding on the maturity of EPO’s $650 million principal amount of senior notes G due Oct. 15.

The senior notes LL will be issued at 99.981% of their principal amount, with a fixed-rate interest coupon of 2.55%. The senior notes MM will be issued at 99.681% of their principal amount, with a fixed-rate interest coupon of 3.75%. 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. Those notes will be issued at 100.836% of their principal amount, with a fixed-rate interest coupon of 4.85%. The senior notes NN will be issued at 98.356% of their principal amount, with a fixed-rate interest coupon of 4.95%.

The expected settlement date is Oct. 14. Enterprise 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., J.P. Morgan Securities LLC, Morgan Stanley, RBS Securities Inc., Scotiabank and UBS Investment Bank acted as joint book-running managers for the offering.