Published on 1/6/2020 in the Prospect News Investment Grade Daily.
New Issue: Enterprise Products sells $3 billion guaranteed notes in three parts
By Cristal Cody
Tupelo, Miss., Jan. 6 – Enterprise Products Operating LLC priced $3 billion of guaranteed fixed-rate senior notes (Baa1/BBB+/BBB+) in three tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $1 billion tranche of 2.8% 10-year notes priced at 99.921 to yield 2.809%, or a spread of 100 basis points over Treasuries. Initial price talk was in the Treasuries plus 120 bps area.
The company sold $1 billion of 3.7% notes due Jan. 31, 2051 at 99.413 to yield 3.732%, or a Treasuries plus 145 bps spread. The notes were initially talked to price in the 165 bps over Treasuries spread area.
In the final tranche, Enterprise Products priced $1 billion of 3.95% 40-year notes at 99.36 to yield 3.982%. The bonds were sold at a spread of Treasuries plus 170 bps.
Price guidance was in the Treasuries plus 195 bps area.
The notes are unconditionally guaranteed by parent company Enterprise Products Partners LP.
Bookrunners were Citigroup Global Markets Inc., Barclays, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments, Inc.
Proceeds will be used 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
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| Amount: | $3 billion
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| Description: | Senior notes
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| Bookrunners: | Citigroup Global Markets Inc., Barclays, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments, Inc.
|
| Co-managers: | BBVA Securities Inc., BMO Capital Markets Corp., BofA Securities, Inc., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, MUFG, PNC Capital Markets LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC and TD Securities (USA) LLC
|
| Trade date: | Jan. 6
|
| Settlement date: | Jan. 15
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
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| Amount: | $1 billion
|
| Maturity: | Jan. 31, 2030
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| Coupon: | 2.8%
|
| Price: | 99.921
|
| Yield: | 2.809%
|
| Spread: | Treasuries plus 100 bps
|
| Call features: | Make-whole call before Oct. 31, 2029 at price equal to greater of par or Treasuries plus 15 bps; thereafter at par
|
| Price guidance: | Treasuries plus 120 bps area
|
|
|
| 31-year notes
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| Amount: | $1 billion
|
| Maturity: | Jan. 31, 2051
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| Coupon: | 3.7%
|
| Price: | 99.413
|
| Yield: | 3.732%
|
| Spread: | Treasuries plus 145 bps
|
| Call features: | Make-whole call before July 31, 2050 at price equal to greater of par or Treasuries plus 25 bps; thereafter at par
|
| Price guidance: | Treasuries plus 165 bps area
|
|
|
| 40-year notes
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| Amount: | $1 billion
|
| Maturity: | Jan. 31, 2060
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| Coupon: | 3.95%
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| Price: | 99.36
|
| Yield: | 3.982%
|
| Spread: | Treasuries plus 170 bps
|
| Call features: | Make-whole call before July 31, 2059 at price equal to greater of par or Treasuries plus 30 bps; thereafter at par
|
| Price guidance: | Treasuries plus 195 bps area
|
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