Published on 9/15/2006 in the Prospect News High Yield Daily.
New Issue: Enterprise Products prices $50 million add-on to 8 3/8% 60-year hybrid securities at 104.154 to yield 7.761%
By Paul A. Harris
St. Louis, Sept. 15 - A little over a month after it tapped the market with a $200 million add-on deal, Enterprise Products Partners LP reopened the same issue, pricing a $50 million add-on to its 8 3/8% 60-year fixed to floating-rate junior subordinated notes (existing ratings Ba2/B+/BB+) at 104.154 to yield 7.761%, according to a press release issued by the company on Friday.
Lehman Brothers ran the books.
The use of proceeds was not disclosed.
The original $300 million issue priced at par on July 13, 2006. The above-mentioned $200 million add-on priced at 103.104 to yield 7.915% on Aug. 22, 2006. The total face amount of the outstanding issue following the transaction disclosed in Friday's press release is $550 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
|
| Face amount: | $50 million
|
| Proceeds: | $52.077 million
|
| Maturity: | Aug. 1, 2066
|
| Security description: | Add-on to 8 3/8% fixed to floating-rate junior subordinated notes
|
| Bookrunner: | Lehman Brothers
|
| 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: | 104.154
|
| Yield | 7.761%
|
| Call: | Make-whole at Treasuries plus 50 basis points up to Aug. 1, 2016, at par afterward
|
| Trade date: | Sept. 15
|
| Settlement date: | Sept. 20 with accrued interest
|
| Existing ratings: | Moody's: Ba1
|
| Standard & Poor's: B+
|
| Fitch: BB+
|
| Distribution: | SEC Registered
|
| Original issue: | $300 million priced at par on July 13, 2006
|
| Previous add-on: | $200 million priced at 103.104 to 7.915% on Aug. 22, 2006
|
| Total issue size: | $550 million (face amount)
|
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