Enterprise Products Partners L.P.

SEC Filings

10-K
ENTERPRISE PRODUCTS PARTNERS L P filed this Form 10-K on 02/28/2018
Entire Document
 

ENTERPRISE PRODUCTS PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The EPO Junior Subordinated Notes E (“Junior Notes E”), which were issued at $1.0 billion principal amount in the aggregate, are redeemable at EPO’s option, in whole or in part, on one or more occasions, on or after August 16, 2027 (the non-call 10 notes) at 100% of their principal amount, plus any accrued and unpaid interest.  Junior Notes E bear interest at a fixed rate of 5.25% per year through August 15, 2027.  Beginning August 16, 2027, Junior Notes E will bear interest at a floating rate based on a three-month LIBOR rate plus 3.033%, reset quarterly.  Junior Notes E also mature in August 2077.

Net proceeds from the issuance of Junior Notes D and E were used for (i) the temporary repayment of approximately $900 million of amounts then outstanding under EPO’s commercial paper program and (ii) the repayment of $800 million in principal amount of Senior Notes L that matured in September 2017.

The following table summarizes the interest rate terms of our junior subordinated notes:

Series
Fixed Annual
Interest Rate
Variable Annual
Interest Rate
Thereafter
EPO Junior Subordinated Notes A
8.375% through July 31, 2016 (1)
3-month LIBOR rate + 3.708%  (6)
EPO Junior Subordinated Notes B
7.034% through January 14, 2018 (2)
Greater of:  (i) 3-month LIBOR rate + 2.680% or (ii) 7.034%  (7)
EPO Junior Subordinated Notes C
7.000% through May 31, 2017 (3)
3-month LIBOR rate + 2.778%  (8)
EPO Junior Subordinated Notes D
4.875% through August 15, 2022 (4)
3-month LIBOR rate + 2.986%  (9)
EPO Junior Subordinated Notes E
5.250% through August 15, 2027 (5)
3-month LIBOR rate + 3.033%  (10)
(1)   Interest is payable semi-annually in arrears in February and August of each year, which commenced in February 2007.
(2)   Interest was payable semi-annually in arrears in January and July of each year, which commenced in January 2008.
(3)   Interest is payable semi-annually in arrears in June and December of each year, which commenced in December 2009.
(4)   Interest is payable semi-annually in arrears in February and August of each year, which commenced in February 2018.
(5)   Interest is payable semi-annually in arrears in February and August of each year, which commenced in February 2018.
(6)   Interest is payable quarterly in arrears in February, May, August and November of each, which commenced in November 2016.
(7)   Interest was payable quarterly in arrears in January, April, July and October of each year commencing in April 2018.
(8)   Interest is payable quarterly in arrears in March, June, September and December of each year, which commenced in September 2017.
(9)   Interest is payable quarterly in arrears in February, May, August and November of each year commencing in November 2022.
(10) Interest is payable quarterly in arrears in February, May, August and November of each year commencing in November 2027.

See Note 22, Subsequent Events, for information regarding the issuance of Junior Subordinated Notes F in February 2018 and the expected redemption of all $682.7 million aggregate principal amount of Junior Subordinated Notes B in March 2018.

Letters of Credit
At December 31, 2017, EPO had $66.4 million of letters of credit outstanding primarily related to our commodity hedging activities.

Lender Financial Covenants
We were in compliance with the financial covenants of our consolidated debt agreements at December 31, 2017.
F-34