Published on 9/7/2021 in the Prospect News Investment Grade Daily.
New Issue: Enterprise Products sells $1 billion 3.3% notes due 2053 at 137.5 bps over Treasuries
By Cristal Cody
Chicago, Sept. 7 – Enterprise Products Operating LLC sold a $1 billion single-tranche offering of senior notes due Feb. 15, 2053 (Baa1/BBB+/BBB+) on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced with a 3.3% coupon at 99.17 to yield 3.343%.
The spread on the notes was listed at 137.5 basis points over Treasuries, low to talk in the Treasuries plus 160 bps area heard from a source on Tuesday morning.
The notes are unconditionally guaranteed by Enterprise Products Partners LP.
Bookrunners are Citigroup Global Markets Inc., Deutsche Bank Securities Inc., SG Americas Securities LLC, U.S. Bancorp Investments Inc., BofA Securities, Inc., Credit Agricole Securities (USA) Inc., MUFG, PNC Capital Markets LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC.
The notes will have a make-whole call with a Treasuries plus 25 bps premium and a par call starting Aug. 15, 2052.
The proceeds will be used for general corporate purposes, including growth capital investments, and repayment of debt, including a portion of its $750 million principal amount of 3.5% senior notes, series VV, due 2022 and/or a portion of its $650 million principal amount of 4.05% senior notes, series CC, due 2022, both due in February.
The midstream energy services provider is based in Houston.
| Issuer: | Enterprise Products Operating LLC
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| Guarantor: | Enterprise Products Partners LP
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| Issue: | Senior notes
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| Amount: | $1 billion
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| Maturity: | Feb. 15, 2053
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| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., SG Americas Securities LLC, U.S. Bancorp Investments Inc., BofA Securities, Inc., Credit Agricole Securities (USA) Inc., MUFG, PNC Capital Markets LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC
|
| Co-managers: | Barclays, BBVA Securities Inc., BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., Truist Securities, Inc. and Wells Fargo Securities, LLC
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| Coupon: | 3.3%
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| Price: | 99.17
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| Yield: | 3.343%
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| Spread: | Treasuries plus 137.5 bps
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| Call features: | Make-whole call at Treasuries plus 25 bps until Aug. 15, 2052; thereafter at par
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| Trade date: | Sept. 7
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| Settlement date: | Sept. 15
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| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Fitch: BBB+
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| Distribution: | SEC registered
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| Price talk: | Treasuries plus 160 bps area
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| Cusip: | 29379VCB7
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