Enterprise Products To Pay Back Debt With Notes Offering

Enterprise Products Partners LP (NYSE:EPD) announced that it has priced senior notes, with aggregate principal of $2.5 billion, which was offered to the public. The partnership expects the offering of the notes to consummate by Jul 8, 2019.

Of the aggregate amount, the notes with $1.25 billion of principal amount will likely mature by Jul 31, 2029. The partnership added that the senior notes will be priced at 99.955% of par value. The notes will carry a fixed interest rate of 3.125%.

Another senior note, with $1.25 billion of principal amount, is expected to mature by Jan 31, 2050. The notes are expected to be priced at 99.792% of par value and will carry fixed interest rate of 4.20%.

The partnership added that it will utilize the net proceeds from the senior notes offerings for paying back debt. In other words, the net proceeds will be utilized for repaying the outstanding amount under commercial paper program of the partnership. The proceeds will also repay the Senior Notes LL, with principal amount of $800 million, which will mature by October 2019. Enterprise Products added that the net proceeds will be employed for capital investments to support organic growth.

Headquartered in Houston, TX, Enterprise Products is among the leading midstream energy infrastructure providers. The partnership owns pipeline networks, spreading across 49,200 miles and carrying natural gas, oil, natural gas liquids and petrochemicals.

Presently, the stock sports a Zacks Rank #1 (Strong Buy). Other prospective players in the energy space include Chevron Corporation (NYSE:CVX) , Helix Energy Solutions Group, Inc. (NYSE:HLX) and Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT) . While Chevron carries a Zacks Rank #2 (Buy), Helix Energy and Calumet Specialty sport a Zacks Rank #1.

Chevron beats the Zacks Consensus Estimate of earnings in three of the past four quarters.

Helix Energy is likely to see earnings growth of 47.4% through 2019.

Calumet Specialty surpassed the Zacks Consensus Estimate of earnings in the past four quarters.

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