Enterprise Products Partners L.P.

SEC Filings

S-1/A
ENTERPRISE PRODUCTS PARTNERS L P filed this Form S-1/A on 07/21/1998
Entire Document
 
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and improvements to processing and transportation systems. Capital
expenditures also include maintenance capital expenditures of approximately
$4.5 million in 1995, $3.4 million in 1996 and $3.7 million in 1997. These
maintenance capital expenditures are in addition to normal annual repairs and
maintenance which are recorded as operating expenses and were approximately
$12.9 million in 1995, $16.2 million in 1996 and $18.6 million in 1997.
 
 Future Capital Expenditures
 
  The Company currently estimates that its capital expenditures for 1998 will
be approximately $56.0 million (including maintenance capital expenditures).
The major portion of the capital expenditures will be for construction of new
projects in Louisiana. The Company expects to finance these expenditures out
of operating cash flows, the proceeds of this offering and borrowings under
its bank credit facility. The Company estimates that its maintenance capital
expenditures will average approximately $5.0 million over each of the next
three years. In addition, the Company estimates that it will expense
approximately $17.1 million for repairs and maintenance in 1998. The Company
expects to finance maintenance capital expenditures and other repair and
maintenance out of operating cash flows.
 
 Distributions from Unconsolidated Affiliates; Loan Participations
 
  Distributions to the Company from Mont Belvieu Associates were $5.0 million
in 1995, $7.2 million in 1996 and $7.3 million in 1997. Prior to the first
quarter of 1998, BEF was prohibited under the terms of its bank indebtedness
from making distributions to its owners. These restrictions lapsed during the
first quarter of 1998 as a result of BEF having repaid 50% of the principal on
such indebtedness, and the Company received its first distribution from BEF in
April 1998. Other investments in or advances to or from the unconsolidated
affiliates for each of the years was not significant to the overall cash flows
of the Company. The Company does not expect any significant cash investments
in or advances to its unconsolidated affiliates in 1998.
 
  In connection with the offering, the Company will purchase participation
interests in a bank loan to Mont Belvieu Associates and a bank loan to BEF.
The Company will acquire an approximate $7.7 million participation interest in
the bank debt of Mont Belvieu Associates, which bears interest at a floating
rate per annum of LIBOR plus 0.75% and matures on December 31, 2001. The
Company will receive monthly principal payments, aggregating approximately
$1.7 million per year, plus interest from Mont Belvieu Associates during the
term of the loan. The Company will receive a final payment of principal of
$1.8 million upon maturity.
 
  The Company will acquire an approximate $26.1 million participation interest
in a bank loan to BEF, which bears interest at a floating rate per annum of
LIBOR plus 0.875% and matures on May 31, 2000. The Company will receive
quarterly principal payments of approximately $3.3 million plus interest from
BEF during the term of the loan.
 
 Bank Credit Facility
 
  In connection with this offering, the Company will enter into a $200.0
million bank credit facility that includes a $50.0 million working capital
facility and a $150.0 million revolving term loan facility. The $150.0 million
revolving term loan facility includes a sublimit of $30.0 million for letters
of credit. In connection with the closing of this offering, the Company
expects to borrow approximately $89.2 million under the revolving term loan
facility.
   
  The Company's obligations under the bank credit facility will be unsecured
general obligations and will be non-recourse to the General Partner.
Borrowings under the bank credit facility will bear interest at either the
bank's prime rate or the Eurodollar rate plus the applicable margin as defined
in the facility. The bank credit facility will expire after two years and all
amounts borrowed thereunder shall be due and payable on such date. There must
be no amount outstanding under the working capital facility for at least 15
consecutive days during each fiscal year.     
 
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