|ENTERPRISE PRODUCTS PARTNERS L P filed this Form 10-K on 02/28/2018|
Liquidity and Capital Resources
Based on current market conditions (as of the filing date of this annual report), we believe we will have sufficient liquidity, cash flow from operations and access to capital markets to fund our capital expenditures and working capital needs for the reasonably foreseeable future. At December 31, 2017, we had $3.75 billion of consolidated liquidity, which was comprised of $3.74 billion of available borrowing capacity under EPO’s revolving credit facilities and $5.1 million of unrestricted cash on hand.
In February 2018, we issued $2.7 billion aggregate principal amount of senior notes and junior subordinated notes and used the net proceeds therefrom for the temporary repayment of amounts outstanding under our commercial paper program and for the expected redemption of all $682.7 million aggregate principal amount of our Junior Subordinated Notes B. For information regarding these debt offerings and the related redemption, see “Significant Recent Developments” within this Item 7. We expect to issue additional equity and debt securities to assist us in meeting our future funding and liquidity requirements, including those related to capital spending.
The following table presents scheduled maturities of our consolidated debt obligations outstanding at December 31, 2017 for the years indicated (dollars in millions):
The following information describes significant transactions that affected our consolidated debt obligations during the year ended December 31, 2017:
Issuance of $1.7 Billion of Junior Subordinated Notes in August 2017
In August 2017, EPO issued a combined $1.7 billion in principal amount of junior subordinated notes in two series. The EPO Junior Subordinated Notes D (“Junior Notes D”), which were issued at $700 million 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, 2022 (the non-call 5 notes) at 100% of their principal amount, plus any accrued and unpaid interest. Junior Notes D bear interest at a fixed rate of 4.875% per year through August 15, 2022. Beginning August 16, 2022, Junior Notes D will bear interest at a floating rate based on a three-month LIBOR rate plus 2.986%, reset quarterly. Junior Notes D mature in August 2077.
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.