Enterprise Products increased debt by $11 billion since 2009, liquidity at $4 billion

By Lisa Kerner

Charlotte, N.C., April 17 - Enterprise Products Partners LP has raised "about $11 billion worth of debt" over the past four years and retained about $2.5 billion of distributable cash flow from operating cash during roughly the same period, according to executive vice president and chief financial officer Randy Fowler.

Fowler made his comments during the Houston-based energy partnership's analyst conference on Wednesday.

Enterprise Products had $16.2 billion of debt on its balance sheet at year-end, including $14.6 billion of senior debt. Almost all of the company's debt, or 99%, is fixed-rate debt, said Fowler.

According to Fowler, Enterprise Products had liquidity of $4.6 billion after its $2.25 billion debt offering in March.

Proceeds from the offering were used to retire $650 million of notes that were maturing, resulting in "$4 billion of liquidity pro forma that," Fowler said.

With supportive debt investors, Enterprise Products has been able to successfully lengthen and strengthen its debt portfolio.

Before, the company was financed a little more on the short side, said Fowler, with an average length of maturity of less than eight years.

Since 2009, almost half of the debt raised has been 30-year debt, "taking the average maturity to 14 years," Fowler said.

So far in 2013, the company has had $1.2 billion of debt maturities, with no maturities remaining for the year.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.