Published on 5/21/2007 in the Prospect News High Yield Daily.
New Issue: Enterprise Products upsized $700 million hybrid notes yield 7.034%
By Paul A. Harris
St. Louis, May 21 - Enterprise Products Operating LP priced an upsized $700 million offering of junior subordinated notes (Ba1/expected BB/BB+) due Jan. 15, 2068 at 99.979 to yield 7.034% on Monday, according to a prospectus filed by the company.
JP Morgan, Citigroup, Lehman Brothers and Wachovia Securities were joint bookrunners for the quick-to-market Securities and Exchange Commission-registered transaction, which was upsized from $500 million.
The notes will bear interest at a 7.034% fixed rate from May 24, 2007 to Jan. 15, 2018, then the coupon will float at three-month Libor plus 268 basis points, subject to the issuer's right to defer interest payments on one or more occasions for up to 10 consecutive years.
Proceeds will be used to reduce short-term debt and for general partnership purposes.
The issuer is a Houston-based processing, transportation and storage services provider to the oil and gas industry.
| Issuer: | Enterprise Products Operating LP
|
| Guarantor: | Enterprise Products Partners LP
|
| Amount: | $700 million (increased from $500 million)
|
| Maturity: | Jan. 15, 2068
|
| Security description: | Junior subordinated notes
|
| Bookrunners: | JP Morgan, Citigroup, Lehman Brothers, Wachovia Securities
|
| Senior co-managers: | Mizuho Securities, Raymond James
|
| Co-managers: | BNP Paribas, Daiwa Securities, HVB Capital Markets, ING, Wells Fargo Securities
|
| Coupon: | 7.034% from May 24, 2007 to Jan. 15, 2018, then three-month Libor plus 268 bps, subject to the issuer's right to defer interest payments on one or more occasions for up to 10 consecutive years
|
| Price to public: | 99.979%
|
| Yield: | 7.034%
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| Spread: | 225 bps
|
| Call date: | Jan. 15, 2018 at par
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| Trade date: | May 21
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| Settlement date: | May 24
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| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB (expected)
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| Fitch: BB+
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| Distribution: | SEC registered
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