New Issue: Enterprise Products prices $2.7 billion of notes in three tranches

By Cristal Cody

Tupelo, Miss., Feb. 1 – Enterprise Products Operating LLC sold $2.7 billion of notes in three tranches, including two tranches of fixed-rate senior notes (Baa1/BBB+/BBB+) and one tranche of junior subordinated fixed-to-floating notes on Thursday, according to FWP filings with the Securities and Exchange Commission.

The company priced $750 million of 2.8% three-year notes at 99.946 to yield 2.819%, or a spread of Treasuries plus 50 basis points.

Enterprise Products sold $1.25 billion of 4.25% 30-year notes at 99.865 to yield 4.258%. The bonds priced with a spread of Treasuries plus 125 bps.

In a separate offering, the company sold $700 million of 5.375% 60-year junior subordinated notes F (Baa2/BBB-/BBB-) at par. The notes will convert to a floating rate of Libor plus 257 bps, reset quarterly, from Feb. 15, 2028.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc., Scotia Capital (USA) Inc., DNB Markets Inc., Morgan Stanley & Co. LLC, SG Americas Securities, LLC and TD Securities (USA) LLC were the bookrunners.

The notes are unconditionally guaranteed by Enterprise Products Partners LP.

Proceeds will be used to repay debt, including repaying borrowings outstanding under the company’s commercial paper program and repurchasing or redeeming all or a portion of its junior subordinated notes B, and for general company purposes.

The midstream energy services provider is based in Houston.

Issuer:	Enterprise Products Operating LLC
Guarantor:	Enterprise Products Partners LP
Amount:	$2.7 billion
Description:	Senior notes and fixed-to-floating rate junior subordinated notes
Bookrunners:	J.P. Morgan Securities LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc., Scotia Capital (USA) Inc., DNB Markets Inc., Morgan Stanley & Co. LLC, SG Americas Securities, LLC and TD Securities (USA) LLC
Senior co-manager:	BBVA Securities Inc.
Co-managers:	Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Mizuho Securities USA Inc., RBC Capital Markets, LLC, Sumitomo Mitsui Banking Corp., SunTrust Robinson Humphrey, Inc., Bank of Tokyo-Mitsubishi UFJ, Ltd., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
Trade date:	Feb. 1
Settlement date:	Feb. 15
Distribution:	SEC registered
Three-year notes
Amount:	$750 million
Securities:	Senior notes
Maturity:	Feb. 15, 2021
Coupon:	2.8%
Price:	99.946
Yield:	2.819%
Spread:	Treasuries plus 50 bps
Call features:	At any time at greater of par and Treasuries plus 10 bps
Ratings:	Moody’s: Baa1
	S&P: BBB+
	Fitch: BBB+
Thirty-year notes
Amount:	$1.25 billion
Securities:	Senior notes
Maturity:	Feb. 15, 2048
Coupon:	4.25%
Price:	99.865
Yield:	4.258%
Spread:	Treasuries plus 125 bps
Call features:	Make-whole call before Aug. 15, 2047 at greater of par and Treasuries plus 20 bps; thereafter at par
Ratings:	Moody’s: Baa1
	S&P: BBB+
	Fitch: BBB+
Sixty-year subordinated notes
Amount:	$700 million
Securities:	Junior subordinated notes
Maturity:	Feb. 15, 2078
Coupon:	5.375%; converts Feb. 15, 2028 to floating rate of Libor plus 257 bps
Price:	Par
Yield:	5.375%
Call features:	On or after Feb. 15, 2028 at par
Ratings:	Moody’s: Baa2
	S&P: BBB-
	Fitch: BBB-

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