Enterprise Products Operating LLC, or EPO, priced a $1.7 billion public offering of its two series of junior subordinated notes.
The securities comprised of $700 million of series D non-call 5 notes due Aug. 16, 2077, and $1 billion of series E non-call 10 notes due Aug. 16, 2077. The offering is expected to settle Aug. 16.
The series D notes will be redeemable at EPO's option on or after Aug. 16, 2022, at 100% of their principal amount, plus any accrued and unpaid interest. The notes will bear interest at a fixed rate of 4.875% per year up to, but not including, Aug. 16, 2022, whereupon the notes will bear interest at a floating rate based on a three-month LIBOR rate plus 298.6 basis points, to be reset quarterly, according to an Aug. 7 news release.
The series E notes will be redeemable at the company's option on or after Aug. 16, 2027, at 100% of their principal amount, including any accrued and unpaid interest thereon. The notes will bear interest at a fixed rate of 5.25% per year up to, but not including, Aug. 16, 2027, whereupon the notes will bear interest at a floating rate based on a three-month LIBOR rate plus 303.3 basis points, to be reset quarterly.
The Enterprise Products Partners LP subsidiary plans to use about $1.68 billion in net proceeds to repay its debt, which may include the temporary repayment of amounts outstanding under its commercial paper program, payment of its $800 million of senior notes L due September at their maturity, and the redemption prior to maturity of up to $700 million of its outstanding junior subordinated notes A due August 2066, junior subordinated notes B due January 2068, and/or junior subordinated notes C due June 2067 and for general company purposes, according to an Aug. 7 free writing prospectus.
Citigroup Global Markets Inc., Barclays Capital Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc., 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 acted as the joint book-running managers.