Published on 1/2/2024 in the Prospect News Investment Grade Daily.
New Issue: Enterprise Products sells $2 billion of guaranteed notes three-, 10-year tranches
By Wendy Van Sickle
Columbus, Ohio, Jan. 2 – Enterprise Products Operating LLC priced $2 billion of guaranteed fixed-rate senior notes (A3/A-/A-) in two tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $1 billion of 4.6% notes due 2027 at 99.897 to yield 4.637%, or a spread of Treasuries plus 55 basis points.
Enterprise Products Operating sold $1 billion of 4.85% notes due 2034 at 99.705 to yield 4.887%, or Treasuries plus 95 bps.
The notes are unconditionally guaranteed by parent company Enterprise Products Partners LP.
MUFG Securities Americas Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., PNC Capital Markets LLC, TD Securities (USA) LLC, BBVA Securities Inc., Deutsche Bank Securities Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC and U.S. Bancorp Investments, Inc. were the lead managers.
Proceeds will be used for general company purposes, including for growth capital investments and the repayment of debt. Debt repayment will include all or a portion of the $850 million 3.9% senior notes due in February and amounts outstanding under a commercial paper program.
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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| Amount: | $2 billion
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| Issue: | Senior notes
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| Bookrunners: | MUFG Securities Americas Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., PNC Capital Markets LLC, TD Securities (USA) LLC, BBVA Securities Inc., Deutsche Bank Securities Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC and U.S. Bancorp Investments, Inc.
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| Co-managers: | BofA Securities, Inc., Barclays, BMO Capital Markets Corp., 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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| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Sidley Austin LLP and Latham & Watkins LLP
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| Counsel to underwriters: | Vinson & Elkins LLP
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| Trade date: | Jan. 2
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| Settlement date: | Jan. 11
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| Ratings: | Moody’s: A3
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| S&P: A-
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| Fitch: A-
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| Distribution: | SEC registered
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| Notes due 2027
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| Amount: | $1 billion
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| Maturity: | Jan. 11, 2027
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| Coupon: | 4.6%
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| Price: | 99.897
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| Yield: | 4.637%
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| Spread: | Treasuries plus 55 bps
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| Call features: | Make-whole call at Treasuries plus 10 bps until Dec. 11, 2026; thereafter at par
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| Cusip: | 29379VCE1
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| Notes due 2034
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| Amount: | $1 billion
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| Maturity: | Jan. 31, 2034
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| Coupon: | 4.85%
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| Price: | 99.705
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| Yield: | 4.887%
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| Spread: | Treasuries plus 95 bps
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| Call features: | Make-whole call before Oct. 31, 2033 at price equal to greater of par or Treasuries plus 15 bps; thereafter at par
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| Cusip: | 29379VCF8
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