Published on 7/14/2006 in the Prospect News High Yield Daily.
New Issue: Enterprise Products prices $300 million 60-year notes
By Paul A. Harris
St. Louis, July 14 - Enterprise Products Operating LP priced a $300 million issue of 60-year fixed-rate to floating-rate junior subordinated notes (Ba1/B+/BB+) at par on Friday, according to information released by the company.
The notes will pay an 8 3/8% fixed rate of interest until Aug. 1, 2016, after which the interest rate will float at three-month Libor plus 370.75 basis points.
Wachovia Securities was the bookrunner and structuring adviser for the registered notes. Lehman Brothers was the joint bookrunner. UBS Investment Bank, Banc of America Securities LLC, Daiwa Securities SMBC Europe Ltd. and Scotia Capital (USA) Inc. were co-managers.
Proceeds will be used to temporarily reduce the company's multi-year revolver and for general partnership purposes.
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 Operating LP
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| Amount: | $300 million
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| Maturity: | Aug. 1, 2066
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| Security description: | Junior subordinated notes
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| Bookrunners: | Wachovia Securities (structuring adviser), Lehman Brothers (joint bookrunner)
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| Co-managers: | UBS Investment Bank, Banc of America Securities LLC, Daiwa Securities SMBC Europe Ltd., Scotia Capital (USA) Inc.
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| Interest payment: | 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
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| Price: | Par
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| Spread: | 331 basis points
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| Call: | Make whole at Treasuries plus 50 basis points up to Aug. 1, 2016, at par after that
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| Trade date: | July 13
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| Settlement date: | July 18
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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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