Published on 8/7/2017 in the Prospect News Investment Grade Daily.
New Issue: Enterprise Products prices $1.7 billion of 60-year subordinated notes in two parts
By Cristal Cody
Tupelo, Miss., Aug. 7 – Enterprise Products Operating LLC sold $1.7 billion of fixed-to-floating rate junior subordinated notes due Aug. 16, 2077 (Baa2/BBB-/) in two tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company priced $700 million of 4.875% series D notes at par to yield a spread of Treasuries plus 298.6 basis points.
The series D notes will convert to a floating-rate Aug. 16, 2022 of Libor plus 298.6 bps and will be reset quarterly.
Enterprise Products sold $1 billion of 5.25% series E notes at par to yield a Treasuries plus 299.2 bps spread.
The series E notes will convert Aug. 16, 2027 to a floating rate of Libor plus 303.3 bps and will be reset quarterly.
Citigroup Global Markets Inc., Barclays, Mizuho Securities USA Inc., MUFG, Credit Suisse Securities (USA) LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC were the bookrunners.
The notes will be guaranteed by Enterprise Products Partners LP.
Proceeds will be used for debt repayment and general company purposes.
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: | $1.7 billion
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| Description: | Fixed-to-floating rate junior subordinated notes
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| Bookrunners: | Citigroup Global Markets Inc., Barclays, Mizuho Securities USA Inc., MUFG, Credit Suisse Securities (USA) LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | BBVA Securities Inc., Deutsche Bank Securities Inc., DNB Markets, Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley | & Co. LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC and TD Securities (USA) LLC
|
| Trade date: | Aug. 7
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| Settlement date: | Aug. 16
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| Ratings: | Moody’s: Baa2
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| S&P: BBB-
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| Distribution: | SEC registered
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|
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| Series D notes
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| Amount: | $700 million
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| Maturity: | Aug. 16, 2077
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| Coupon: | 4.875%; converts Aug. 16, 2022 to floating rate of Libor plus 298.6 bps
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| Price: | Par
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| Yield: | 4.875%
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| Spread: | Treasuries plus 298.6 bps
|
| Call features: | On or after Aug. 16, 2022 at par
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|
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| Series E notes
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| Amount: | $1 billion
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| Maturity: | Aug. 16, 2077
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| Coupon: | 5.25%; converts Aug. 16, 2027 to floating rate of Libor plus 303.3 bps
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| Price: | Par
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| Yield: | 5.25%
|
| Spread: | Treasuries plus 299.2 bps
|
| Call features: | On or after Aug. 16, 2027 at par
|
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