By Paul A. Harris
St. Louis, Aug. 22 - Enterprise Products Partners LP priced an upsized $200 million add-on to its 8 3/8% fixed-rate to floating-rate junior subordinated notes due Aug. 1, 2066 (Ba1/B+/BB+) at a 310 basis point spread to Treasuries, where it had been launched, on Tuesday, according to market sources.
Wachovia Securities ran the books for the registered deal, which was priced off of the high-grade desk.
The add-on, which was upsized from $150 million, came at a dollar price of 103.104 resulting in a 7.915% yield to worst.
The notes will pay a fixed coupon until Aug. 1, 2016, after which the coupon will float at Libor plus 370.75 basis points.
Proceeds will be used for future business acquisitions and other general corporate purposes, such as working capital, investments in subsidiaries, the retirement of existing debt and/or the repurchase of common units or other securities.
The original $300 million issue priced at par on July 13. The total issue size following Tuesday's add-on is $500 million.
Enterprise Products is a Houston-based provider of processing, transportation and storage services to the natural gas, natural gas liquids and crude oil industries.
| Issuer: | Enterprise Products Partners LP
|
| Amount: | $200 million (increased from $150 million)
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| Maturity: | Aug. 1, 2066
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| Security description: | Add-on to 8 3/8% fixed to floating-rate junior subordinated notes
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| Bookrunner: | Wachovia Securities
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| Coupon: | 8 3/8% from July 18, 2006 to Aug. 1, 2016, beginning on Feb. 1, 2007, subject to the issuer's right to defer interest on one or more occasions for up to 10 consecutive years, from Aug. 1, 2016 through maturity at three-month Libor plus 370.75 bps, subject to the issuer's right to defer interest on one or more occasions for up to 10 consecutive years
|
| Price: | 103.104
|
| Yield to worst: | 7.915%
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| Spread: | 310 bps
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| Call: | Make whole at Treasuries plus 50 basis points up to Aug. 1, 2016, at par after that
|
| Trade date: | Aug. 22
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| Settlement date: | Aug. 28 with accrued interest
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| Ratings: | Moody's: Ba1
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| Standard & Poor's: B+
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| Fitch: BB+
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| Distribution: | SEC Registered
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| Original issue: | $300 million priced at par on July 13, 2006
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| Total size: | $500 million
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