Enterprise Products gets $1 billion 364-day revolving credit facility

By Sarah Lizee

Olympia, Wash., April 6 – Enterprise Products Partners LP operating subsidiary Enterprise Products Operating LLC entered into a $1 billion 364-day revolving credit agreement on Friday with Citibank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Citibank, JPMorgan Chase Bank, NA, MUFG Union Bank, NA, Mizuho Bank, Ltd., TD Securities (USA) LLC, Bank of Nova Scotia, Houston Branch, RBC Capital Markets and Truist Bank are joint lead arrangers and joint bookrunners.

JPMorgan, MUFG, Mizuho, Toronto-Dominion Bank, New York Branch, Scotiabank, Royal Bank of Canada and Truist Bank are co-syndication agents.

Borrowings bear interest at Libor plus 125 basis points to 177.5 bps, and the facility fee ranges from 25 bps to 35 bps, in each case based on debt ratings.

The facility will mature on April 2, 2021.

The incremental $1 billion of borrowing capacity is in addition to the aggregate $5 billion of borrowing capacity currently available under the operating subsidiary’s existing credit agreements.

The operating subsidiary may use the proceeds for working capital, capital expenditures, acquisitions and other company purposes.

As of Friday, the operating subsidiary had no borrowings outstanding under its $3.5 billion revolver dated Sept. 13, 2017 with Wells Fargo Bank, NA as administrative agent, its $1.5 billion 364-day revolver dated Sept. 10, 2019 with Citibank as administrative agent, or the new 364-day revolver.

Enterprise Products Operating has consolidated liquidity of about $7.7 billion, consisting of available borrowing capacity under the three credit agreements and unrestricted cash on hand.

The midstream energy services provider is based in Houston.

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