Enterprise Products Partners L.P.

SEC Filings

10-Q
GULFTERRA ENERGY PARTNERS L P filed this Form 10-Q on 08/09/2004
Entire Document
 
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  Cameron Highway
 
     Cameron Highway Oil Pipeline Company (Cameron Highway), an unconsolidated
affiliate in which we have a 50 percent joint venture ownership interest,
entered into a $325 million project loan facility, consisting of a $225 million
construction loan and $100 million of senior secured notes.
 
     The construction loan bears interest at a variable rate. Upon completion of
the construction, which is expected during the fourth quarter of 2004, the
construction loan will convert to a term loan maturing July 2008, subject to the
terms of the loan agreement. At the end of the first quarter following the first
anniversary of the conversion into a term loan, Cameron Highway will be required
to make quarterly principal payments of $8.1 million, with the remaining unpaid
principal amount payable on the maturity date. If the construction loan fails to
convert into a term loan by January 2006, the construction loan and senior
secured notes become fully due and payable. At June 30, 2004, Cameron Highway
had $171 million outstanding under the construction loan at an average interest
rate of 4.56%.
 
     The interest rate on Cameron Highway's senior secured notes is 3.25% over
the rate on 10-year U.S. Treasury securities. Principal payments of $4 million
are due quarterly from September 2008 through December 2011, $6 million each
from March 2012 through December 2012, and $5 million each from March 2013
through the principal maturity date of December 2013. At June 30, 2004, Cameron
Highway had $100 million outstanding under the senior secured notes at an
average interest rate of 7.36%.
 
     The project loan facility as a whole is secured by (1) substantially all of
Cameron Highway's assets, including, upon conversion, a debt service reserve
capital account, and (2) all of the equity interest in Cameron Highway. Other
than the pledge of our equity interest and our construction obligations under
the relevant producer agreements, the debt is non-recourse to us. The
construction loan and senior secured notes prohibit Cameron Highway from making
distributions to us until the construction loan is converted into a term loan
and Cameron Highway meets certain financial requirements.
 
  DEBT MATURITY TABLE
 
     Aggregate maturities of the principal amounts of long-term debt and other
financing obligations for the remainder of 2004 and the following 4 years and in
total thereafter are as follows at June 30, 2004 (in thousands):
 

<Table>
<S>                                                           <C>
2004........................................................  $    2,500
2005........................................................       5,000
2006........................................................     467,000
2007........................................................     198,000
2008........................................................     288,000
Thereafter..................................................     921,515
                                                              ----------
  Total long-term debt and other financing obligations,
     including current maturities...........................  $1,882,015
                                                              ==========
</Table>

 
  LOSS DUE TO EARLY REDEMPTIONS OF DEBT
 
     We recognized losses associated with early redemptions of debt as follows
(in thousands):
 

<Table>
<Caption>
                                                       QUARTER ENDED    SIX MONTHS ENDED
                                                         JUNE 30,           JUNE 30,
                                                      ---------------   ----------------
                                                       2004     2003     2004      2003
                                                      -------   -----   -------   ------
<S>                                                   <C>       <C>     <C>       <C>
Loss due to payment of redemption premiums..........  $12,401   $ --    $12,401   $   --
Loss due to write-off of unamortized debt issuance
  costs.............................................    3,884     --      3,884    3,762
                                                      -------   -----   -------   ------
                                                      $16,285   $ --    $16,285   $3,762
                                                      =======   =====   =======   ======
</Table>

 
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