Cameron Highway Oil Pipeline Completes Financing

Enterprise Products Partners and Valero Energy report that their jointly owned venture, Cameron Highway Oil Pipeline, has successfully completed the private issuance of $415 million of non-recourse, Series A and B senior secured notes due 2017 to certain qualified institutional buyers. The notes issued by Cameron Highway consist of $365 million of Series A notes with a fixed-rate coupon of 5.86 percent and a maturity date of December 15, 2017; and $50 million of Series B floating rate notes with a variable-rate coupon based on LIBOR plus 1.00 percent with the same terms as the Series A notes.

Proceeds from the issuance of the senior secured notes were used to refinance the existing $415 million term loan that was scheduled to mature in 2006.

The Cameron Highway notes have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act.

Cameron Highway Oil Pipeline System, jointly owned by affiliates of Enterprise and Valero, is a 380-mile 24- and 30-inch pipeline, with capacity to deliver up to 500,000 barrels per day of crude oil from developments in the Gulf of Mexico to the major refining markets along the Texas Gulf Coast located in Port Arthur and Texas City.


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