Enterprise increases bank credit facilities to $5.5 billion

By Alyssa Stahr

Chicago, Sept. 16 – Enterprise Products Partners, LP announced in a Sept. 16 press release that its subsidiary, Enterprise Products Operating LLC, has increased its capacity of bank credit facilities by $500 million to $5.5 billion.

The expanded facility includes an amended $4 billion revolving credit agreement maturing in September 2020 and an amended and extended $1.5 billion 364-day revolving credit agreement, according to a news release.

As of Wednesday, aggregate borrowing capacity under the increased bank credit facilities is approximately $4.7 billion.

The 364-day revolver has a $200 million accordion while the $4 billion revolver has a $500 million accordion, according to an 8-K filing with the Securities and Exchange Commission.

Interest on the 364-day revolver can vary from Libor plus 92.5 basis points to Libor plus 145 bps, depending on the company’s credit rating. The facility fee ranges from 7.5 bps to 17.5 bps.

Interest on the five-year revolver can vary from Libor plus 90 bps to Libor plus 135 bps, again depending on the company’s credit rating. The facility fee ranges from 10 bps to 27.5 bps.

For the 364-day revolver, Citigroup Global Markets Inc., Wells Fargo Securities, LLC, DNB Markets, Inc., J.P. Morgan Securities LLC, Mizuho Bank, Ltd., Bank of Tokyo-Mitsubishi UFJ, Ltd., RBC Capital Markets, Bank of Nova Scotia, SunTrust Robinson Humphrey, Inc. and UBS Securities LLC are joint lead arrangers and joint book runners. Citibank, NA is administrative agent, Wells Fargo Bank, NA, DNB Bank ASA, New York Branch, JPMorgan Chase Bank, NA, Mizuho Bank, Ltd. and Bank of Tokyo-Mitsubishi UFJ, Ltd. are co-syndication agents and Royal Bank of Canada, Bank of Nova Scotia, SunTrust Bank and UBS Securities LLC are co-documentation agents.

For the five-year revolver, Wells Fargo Securities, LLC, Citigroup Global Markets Inc., DNB Markets, Inc., J.P. Morgan Securities LLC, Mizuho Bank, Ltd., Bank of Tokyo-Mitsubishi UFJ, Ltd., RBC Capital Markets, Bank of Nova Scotia, SunTrust Robinson Humphrey, Inc. and UBS Securities LLC are joint lead arrangers and joint book runners. Wells Fargo Bank, NA is administrative agent, Citibank, NA, DNB Bank ASA, New York Branch, JPMorgan Chase Bank, NA, Mizuho Bank, Ltd. and Bank of Tokyo-Mitsubishi UFJ, Ltd. are co-syndication agents and Royal Bank of Canada, Bank of Nova Scotia, SunTrust Bank and UBS Securities LLC are co-documentation agents.

The company has $8 billion of organic growth projects under construction that should be completed by 2017, allowing for new sources of cash flow, Michael A. Creel, chief executive officer, said in the news release. The $500 million expansion will provide additional financial flexibility while the projects are completed.

Enterprise Products Partners is a Houston-based publicly traded partnership and a provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals.

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