Enterprise Products Gets More Credit (EPD)
Enterprise Products Partners LP (NYSE:EPD), a pipeline master limited partnership, increased its credit facilities by $593 million yesterday. The company obtained a $375 million senior revolving credit facility and a $218 billion senior term loan to add to its nearly $1.8 billion in senior unsecured revolving credit facilities.
The term loan came from Japan’s Mizuho Corporate Bank, Ltd, carries aninterest rate of approximately 4.93%, including the cost of foreignexchange currency swaps, and matures on March 30, 2009. The $375million revolver matures in November 2009, and the company did notspecify an interest rate.
The company president pointed to the “general contraction” in availablecredit and stated that Enterprise thought it “prudent” to secure”additional financial flexibility” for 2009.
Enterprise’s debt-to-cap ratio is already 0.9:1, and the new creditfacilities raise the potential ratio to 1:1. The share price droppedmarginally yesterday, yet shares are trading down almost 2% at $21.30right after the open. Its 52-week trading range is $16.00 to $32.64.
November 19, 2008