Published on 5/4/2015 in the Prospect News Investment Grade Daily.
New Issue: Enterprise Products sells $2.5 billion three-part senior notes issue
By Aleesia Forni
Virginia Beach, May 4 – Enterprise Products Operating LLC was in Monday’s market with a $2.5 billion three-part offering of senior notes (Baa1/BBB+/), according to a market source and a FWP filed with the Securities and Exchange Commission.
The sale included $750 million of 1.65% notes due 2018 priced at 99.881 to yield 1.691%, or Treasuries plus 75 basis points.
An $875 million 3.7% note due 2026 priced at 99.635 to yield 3.742%, or Treasuries plus 160 bps.
Finally, $875 million of 4.9% notes due 2046 sold at 99.635 to yield 4.932% with a spread of 205 bps over Treasuries.
All tranches sold at the tight end of price guidance.
The notes will be guaranteed by Enterprise Products Partners LP.
Wells Fargo Securities, LLC, Barclays, Credit Suisse Securities (USA) LLC, MUFG, Mizuho Securities USA Inc., RBC Capital Markets, LLC, SunTrust Robinson Humphrey, Inc. and U.S. Bancorp Investments, Inc. are the bookrunners.
Proceeds will be used to repay commercial paper, 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
|
| Issue: | Senior notes
|
| Amount: | $2.5 billion
|
| Bookrunners: | Wells Fargo Securities, LLC, Barclays, Credit Suisse Securities (USA) LLC, MUFG, Mizuho Securities USA Inc., RBC Capital Markets, LLC, SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc.
|
| Co-managers: | BBVA Securities Inc., BofA Merrill Lynch, DNB Markets, Inc., Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., UBS Securities LLC, Deutsche Bank Securities Inc.
|
| Trade date: | May 4
|
| Settlement date: | May 7
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: BBB+
|
| Distribution: | SEC-registered
|
|
|
| Three-year notes
|
| Amount: | $750 million
|
| Maturity: | May 7, 2018
|
| Coupon: | 1.65%
|
| Price: | 99.881
|
| Yield: | 1.691%
|
| Spread: | 75 bps
|
| Price guidance: | 80 bps area, tightened from 95 bps area
|
| Make-whole call: | 15 bps
|
|
|
| 10.5-year notes
|
| Amount: | $875 million
|
| Maturity: | Feb. 15, 2026
|
| Coupon: | 3.7%
|
| Price: | 99.635
|
| Yield: | 3.742%
|
| Spread: | 160 bps
|
| Price guidance: | 165 bps area, tightened from 170 bps area
|
| Make-whole call: | 25 bps prior to Nov. 15, 2025
|
|
|
| 31-year bonds
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| Amount: | $875 million
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| Maturity: | May 15, 2046
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| Coupon: | 4.9%
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| Price: | 99.635
|
| Yield: | 4.932%
|
| Spread: | 205 bps
|
| Price guidance: | 210 bps area, tightened from 215 bps to 220 bps
|
| Make-whole call: | 35 bps prior to Nov. 15, 2045
|
|
|
|
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