By Andrea Heisinger
New York, Sept. 24 - Enterprise Products Operating LLC priced an upsized $1.1 billion of senior notes (Baa3/BBB-/BBB-) in two tranches by early afternoon on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The size was increased from $1 billion, a source said.
The $500 million of 5.25% notes due Jan. 31, 2020 priced at 99.355 to yield 5.333%, or Treasuries plus 195 basis points. The notes have a make-whole call at Treasuries plus 30 bps.
A $600 million tranche of 6.125% 30-year notes priced at 99.386 to yield 6.17%, or Treasuries plus 200 bps. They have a make-whole call at Treasuries plus 35 bps.
Bookrunners were J.P. Morgan Securities Inc., Bank of America Merrill Lynch, BNP Paribas Securities Corp., Morgan Stanley & Co. Inc. and Mizuho Securities USA Inc.
Co-managers were RBS Securities Inc., Scotia Capital, SunTrust Robinson Humphrey Inc., Wells Fargo Securities, Daiwa Securities America Inc., Deutsche Bank Securities Inc., DnB NOR Markets, ING Financial Markets and UBS Securities LLC.
Proceeds will be used to repay $500 million of senior notes due in October at maturity, to reduce borrowings under a multi-year revolving credit facility and for general corporate purposes.
The deal is guaranteed by Enterprise Products Partners, LP.
The midstream energy company is based in Houston.
| Issuer: | Enterprise Products Operating LLC
|
| Guarantor: | Enterprise Products Partners, LP
|
| Issue: | Senior notes
|
| Total amount: | $1.1 billion, increased from $1 billion
|
| Bookrunners: | J.P. Morgan Securities Inc., Bank of America Merrill Lynch, BNP Paribas Securities Corp., Morgan Stanley & Co. Inc., Mizuho Securities USA Inc.
|
| Co-managers: | RBS Securities Inc., Scotia Capital, SunTrust Robinson Humphrey Inc., Wells Fargo Securities, Daiwa Securities America Inc., Deutsche Bank Securities Inc., DnB NOR Markets, ING Financial Markets, UBS Securities LLC
|
| Trade date: | Sept. 24
|
| Settlement date: | Oct. 5
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
|
|
| Notes due 2020
|
| Amount: | $500 million
|
| Maturity: | Jan. 31, 2020
|
| Coupon: | 5.25%
|
| Price: | 99.355
|
| Yield: | 5.333%
|
| Spread: | Treasuries plus 195 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
|
|
| 30-year notes
|
| Amount: | $600 million
|
| Maturity: | Oct. 15, 2039
|
| Coupon: | 6.125%
|
| Price: | 99.386
|
| Yield: | 6.17%
|
| Spread: | Treasuries plus 200 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
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