Published on 4/4/2016 in the Prospect News Investment Grade Daily.
New Issue: Enterprise Products sells $1.25 billion of senior notes in three parts
By Aleesia Forni
New York, April 4 – Enterprise Products Operating LLC sold a $1.25 billion offering of senior notes (Baa1/BBB+) on Monday in new and reopened tranches, according to a market source and an FWP filed with the Securities and Exchange Commission.
There was $575 million of 2.85% five-year senior notes sold at Treasuries plus 165 basis points. Pricing was at 99.898 to yield 2.872%.
And $575 million of 3.95% 11-year notes priced at 99.76 to yield 3.978%, or Treasuries plus 220 bps.
A $100 million add-on to the company’s 4.9% notes due 2046 sold at 95.516 to yield 5.196%, or a spread of Treasuries plus 260 bps.
The notes will be guaranteed by Enterprise Products Partners LP.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., DNB Markets and Scotia Capital (USA) Inc. are the bookrunners.
Proceeds will be used to repay debt, including commercial paper, 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: | $1.25 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., DNB Markets, Scotia Capital (USA) Inc.
|
| Co-managers: | Barclays, BBVA Securities Inc., Credit Suisse Securities (USA) LLC, MUFG, Mizuho Securities USA Inc., RBC Capital Markets, LLC, SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, UBS Securities LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC
|
| Trade date: | April 4
|
| Settlement date: | April 13
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: BBB+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $575 million
|
| Maturity: | April 15, 2021
|
| Coupon: | 2.85%
|
| Price: | 99.898
|
| Yield: | 2.872%
|
| Spread: | Treasuries plus 165 bps
|
| Make-whole call: | Treasuries plus 25 bps prior to March 15, 2021, then callable at par
|
|
|
| 11-year notes
|
| Amount: | $575 million
|
| Maturity: | Feb. 15, 2027
|
| Coupon: | 3.95%
|
| Price: | 99.76
|
| Yield: | 3.978%
|
| Spread: | Treasuries plus 220 bps
|
| Make-whole call: | Treasuries plus 35 bps prior to Nov. 15, 2026, then callable at par
|
|
|
| Add-on to notes due 2046
|
| Amount: | $100 million
|
| Maturity: | May 15, 2046
|
| Coupon: | 4.9%
|
| Price: | 95.516
|
| Yield: | 5.196%
|
| Spread: | Treasuries plus 260 bps
|
| Make-whole call: | Treasuries plus 35 bps prior to Nov. 15, 2045, then callable at par
|
| Total issue size: | $975 million, including $875 million priced on May 4, 2015
|
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