By Andrea Heisinger
New York, Aug. 10 - Enterprise Products Operating LLC sold $1.25 billion of senior notes (Baa3/BBB-/BBB-) in two maturities late on Wednesday, a source close to the trade said.
A $650 million tranche of 4.05% notes due 2022 was sold at 99.79 to yield 4.075% with a spread of 200 basis points over Treasuries. The tranche has a make-whole call at Treasuries plus 30 bps.
The second part was $600 million of 5.7% notes due 2042 that priced at 99.887 to yield 5.708% with a spread of Treasuries plus 225 bps. The tranche has a make-whole call at Treasuries plus 35 bps.
Each of the notes priced in line with guidance, which was in the 200 bps area for the tranche due 2022 and the 225 bps area for tranche due 2042, the source said.
Bookrunners were Barclays Capital Inc., Bank of America Merrill Lynch and Citigroup Global Markets Inc.
BNP Paribas Securities Corp., DnB NOR Markets, Inc., RBS Securities Inc., Scotia Capital (USA) Inc., Banco Bilbao Vizcaya Argentaria, SA, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, SG Americas Securities, LLC, UBS Securities LLC, ING Financial Markets LLC, Natixis Securities North America Inc. and U.S. Bancorp Investments, Inc. were the co-managers.
Proceeds are being used to temporarily reduce borrowings under a multi-year revolving credit facility and for general corporate purposes. Also, subject to the completion of the Duncan Energy Partners merger, proceeds may also be used to repay debt under Duncan's existing credit facilities.
The notes are 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
|
| Amount: | $1.25 billion
|
| Bookrunners: | Barclays Capital Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc.
|
| Co-managers: | BNP Paribas Securities Corp., DnB NOR Markets, Inc., RBS Securities Inc., Scotia Capital (USA) Inc., Banco Bilbao Vizcaya Argentaria, SA, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, SG Americas Securities, LLC, UBS Securities LLC, ING Financial Markets LLC, Natixis Securities North America Inc., U.S. Bancorp Investments, Inc.
|
| Trade date: | Aug. 10
|
| Settlement date: | Aug. 24
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
|
|
| Notes due 2022
|
| Amount: | $650 million
|
| Maturity: | Feb. 15, 2022
|
| Coupon: | 4.05%
|
| Price: | 99.79
|
| Yield: | 4.075%
|
| Spread: | Treasuries plus 200 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 200 bps area
|
|
|
| Notes due 2042
|
| Amount: | $600 million
|
| Maturity: | Feb. 15, 2042
|
| Coupon: | 5.7%
|
| Price: | 99.887
|
| Yield: | 5.708%
|
| Spread: | Treasuries plus 225 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Price talk: | 225 bps area
|
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