Published on 7/30/2020 in the Prospect News Investment Grade Daily.
New Issue: Enterprise Products prices $1.25 billion of guaranteed notes in two tranches
By Cristal Cody
Tupelo, Miss., July 30 – Enterprise Products Operating LLC priced $1.25 billion of guaranteed fixed-rate senior notes (Baa1/BBB+/BBB+) in two tranches on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The company placed a $250 million add-on to its 2.8% notes due Jan. 31, 2030 at 107.211 to yield 1.943%, or a spread of Treasuries plus 140 basis points.
The issue originally priced in a $1 billion tranche on Jan. 6, 2020 at 99.921 to yield 2.809%, or a spread of 100 bps over Treasuries. The total outstanding is now $1.25 billion.
Enterprise Products Operating sold $1 billion of new 3.2% notes due Feb. 15, 2052 at 99.233 to yield 3.239%, or Treasuries plus 205 bps.
The notes are unconditionally guaranteed by parent company Enterprise Products Partners LP.
J.P. Morgan Securities LLC, Mizuho Securities USA Inc., MUFG, Scotia Capital (USA) Inc., Citigroup Global Markets Inc., RBC Capital Markets, LLC, SunTrust Robinson Humphrey, Inc. and TD Securities (USA) LLC were the lead managers.
Proceeds will be used to repay debt and for general company purposes.
The midstream energy services provider is based in Houston.
| Issuer: | Enterprise Products Operating LLC
|
| Guarantor: | Enterprise Products Partners LP
|
| Amount: | $1.25 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, Mizuho Securities USA Inc., MUFG, Scotia Capital (USA) Inc., Citigroup Global Markets Inc., RBC Capital Markets, LLC, SunTrust Robinson Humphrey, Inc. and TD Securities (USA) LLC
|
| Co-managers: | BBVA Securities Inc., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., SMBC Nikko Securities America, Inc., SG Americas Securities, LLC, U.S. Bancorp Investments, Inc., Barclays, BMO Capital Markets Corp., BofA Securities, Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC and Wells Fargo Securities, LLC
|
| Trade date: | July 30
|
| Settlement date: | Aug. 7
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Add-on notes due 2030
|
| Amount: | $250 million reopening
|
| Maturity: | Jan. 31, 2030
|
| Description: | Senior AAA notes
|
| Coupon: | 2.8%
|
| Price: | 107.211
|
| Yield: | 1.943%
|
| Spread: | Treasuries plus 140 bps
|
| Call features: | Make-whole call before Oct. 31, 2029 at price equal to greater of par or Treasuries plus 15 bps; thereafter at par
|
| Total outstanding: | $1.25 billion, including $1 billion of notes priced Jan. 6, 2020 at 99.921 to yield 2.809%, or Treasuries plus 100 bps
|
|
|
| Notes due 2052
|
| Amount: | $1 billion
|
| Maturity: | Feb. 15, 2052
|
| Description: | Senior DDD notes
|
| Coupon: | 3.2%
|
| Price: | 99.233
|
| Yield: | 3.239%
|
| Spread: | Treasuries plus 205 bps
|
| Call features: | Make-whole call before Aug. 15, 2051 at price equal to greater of par or Treasuries plus 35 bps; thereafter at par
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
