Enterprise Products enters $3.5 billion revolver to fund Duncan merger

By Aleesia Forni

Columbus, Ohio, Sept. 8 - Enterprise Products Operating LLC closed on a $3.5 billion five-year revolving credit facility in connection with the merger of its parent Enterprise Products Partners LP with Duncan Energy Partners LP, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

Part of the proceeds will be used to refinance the company's existing revolver, which the company terminated.

Borrowings will also be used for working capital, acquisitions and other company purposes.

The facility bears interest at a spread of Libor plus 107.5 basis points to 165 bps based on the company's credit rating.

Facility fees range from 17.5 bps to 35 bps.

The maturity date of the new revolver may be extended by one year at Enterprise Product's request.

Wells Fargo Securities LLC, RBS Securities Inc., Mizuho Corporate Bank, Ltd. and The Bank of Nova Scotia are joint lead arrangers and joint bookrunners.

Wells Fargo Bank NA is administrative agent.

The Royal Bank of Scotland plc, Mizuho Corporate Bank Ltd. and The Bank of Nova Scotia are co-syndication agents.

Enterprise Products is a Houston-based provider of midstream energy services.

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