Enterprise Prices $2B Senior Notes, Comprised Of $1B Senior Notes Due January 11, 2027 And $1B Senior Notes Due January 31, 2034
Portfolio Pulse from Benzinga Newsdesk
Enterprise Products Partners L.P. (EPD) has priced a public offering of $2 billion in senior notes, split evenly between notes due in 2027 and 2034. The proceeds will be used for general purposes, growth investments, and debt repayment, including the $850 million 3.90% Senior Notes JJ due in February 2024. The 2027 notes have a 4.60% interest rate and the 2034 notes have a 4.85% rate, with both sets of notes being issued at a slight discount. EPD will guarantee the notes unconditionally on an unsecured and unsubordinated basis, with settlement expected on January 11, 2024.
January 03, 2024 | 6:14 am
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NEUTRAL IMPACT
Enterprise Products Partners L.P. has announced a $2 billion senior notes offering to fund growth and repay debt, including the upcoming maturity of its 3.90% Senior Notes JJ due 2024.
The offering of senior notes by EPD is a common financial strategy to secure capital for growth and to manage existing debt. The issuance of these notes at a slight discount with a moderate interest rate indicates a stable approach to financing. However, the impact on the stock price in the short term is likely to be neutral as the market often views such debt offerings as routine unless accompanied by other significant news or changes in the company's financial outlook.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100