Enterprise Products signs two new revolvers for $4.2 billion

By William Gullotti

Buffalo, N.Y., March 31 – Enterprise Products Partners LP operating subsidiary Enterprise Products Operating LLC replaced two of its revolving credit facilities on Friday in an aggregate total of $4.2 billion, according to an 8-K filing with the Securities and Exchange Commission.

364-day revolver

$1.5 billion of the aggregate total is in the form of a 364-day revolving credit facility with Citibank, NA as administrative agent.

The 364-day revolver may be increased by up to $200 million to $1.7 billion. Amounts borrowed under the credit agreement mature on March 29, 2024. However, the company may, between 15 and 60 days prior to the maturity date, elect to have the entire principal balance then outstanding continued as non-revolving term loans for a period of one additional year, payable on March 29, 2025.

Interest is equal to SOFR plus a spread of 81.5 basis points to 132.5 bps, depending on the company’s debt ratings.

In addition, the company is required to pay a facility fee of 6 bps to 17.5 bps, also based on ratings.

As with the nearly identical 364-day revolver it replaced, the credit agreement replaces the company’s existing 364-day revolving credit agreement dated Sept. 6, 2022 with Citibank as administrative agent, which provided for an aggregate borrowing capacity of $1.5 billion and had a maturity date of Sept. 5, 2023.

Citibank, Wells Fargo Securities, LLC, Barclays Bank plc, J.P. Morgan Securities LLC, Mizuho Bank, Ltd., MUFG Bank, Ltd., RBC Capital Markets, Sumitomo Mitsui Banking Corp., TD Securities (USA) LLC, Bank of Nova Scotia and Truist Securities, Inc. are the joint lead arrangers and joint bookrunners.

Wells Fargo Bank, NA, JPMorgan Chase Bank, NA, Mizuho, MUFG and Truist Bank are co-syndication agents.

Barclays Bank, Royal Bank of Canada, Sumitomo Mitsui, Bank of Nova Scotia, Houston Branch and Toronto-Dominion Bank, New York Branch are co-documentation agents.

Multiyear revolver

The other $2.7 billion revolver, with Wells Fargo Bank, NA as administrative agent, matures March 31, 2028.

The multiyear revolver likewise may be expanded, in this case by $500 million to $3.2 billion. With the consent of the lenders, the revolver can be extended two one-year periods at the request of the borrower.

Interest is equal to SOFR plus a margin ranging from 80 bps to 130 bps. There is also a facility fee that ranges from 7.5 bps to 20 bps. As with the first revolver, the margins and fee are determined via the company’s debt ratings.

The new revolver replaced a $3 billion one, also with Wells Fargo and signed Sept. 7, 2021, which was scheduled to mature Sept. 7, 2026.

Wells Fargo is also acting as a joint lead arranger and joint bookrunner along with Citibank, NA, Barclays Bank plc, J.P. Morgan Securities LLC, Mizuho Bank, Ltd., MUFG Bank, Ltd., RBC Capital Markets, Sumitomo Mitsui Banking Corp., TD Securities (USA) LLC, Bank of Nova Scotia and Truist Securities, Inc.

Citibank, Mizuho and MUFG are also acting as co-syndication agents, joined by JPMorgan Chase Bank, NA and Truist Bank.

Barclays Bank, Royal Bank of Canada, Sumitomo Mitsui, Bank of Nova Scotia, Houston Branch and Toronto-Dominion Bank, New York Branch are co-documentation agents.

The company may use proceeds from both facilities for working capital, capital expenditures, acquisitions and other company purposes.

The midstream energy services provider is based in Houston.

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