Exhibit 1.1
ENTERPRISE PRODUCTS OPERATING LLC
$400,000,000 5.65% Senior Notes due 2013
$700,000,000 6.50% Senior Notes due 2019
UNDERWRITING AGREEMENT
March 31, 2008
Lehman
Brothers Inc.
Citigroup Global Markets Inc.
J.P. Morgan Securities Inc.
Scotia Capital (USA) Inc.
As Representatives of the several
Underwriters named in Schedule I attached hereto,
c/o
Lehman Brothers Inc.
745 Seventh Avenue
New York, New York 10019
Ladies
and Gentlemen:
Enterprise Products Operating LLC, a
Texas limited liability company (the “ Operating LLC
”), proposes to issue and sell to the underwriters listed on
Schedule I hereto (collectively, the “
Underwriters ”) $400,000,000 aggregate principal
amount of the Operating LLC’s 5.65% Senior Notes due 2013 and
$700,000,000 aggregate principal amount of the Operating
LLC’s 6.50% Senior Notes due 2019 (collectively, the “
Notes ”), as set forth on Schedule I hereto, to
be fully and unconditionally guaranteed on a senior unsecured basis
by Enterprise Products Partners L.P., a Delaware limited
partnership (the “ Partnership ”) (the “
Guarantees ,” together with the Notes, the “
Securities ”).
The Securities are to be issued under
the Indenture dated as of October 4, 2004 among the Operating
LLC (as successor to Enterprise Products Operating L.P.), as
issuer, the Partnership, as parent guarantor, and Wells Fargo Bank,
N.A., as trustee (the “ Trustee ”)
(collectively, as amended and supplemented by the Tenth
Supplemental Indenture, dated as of June 30, 2007, providing
for the Operating LLC as the successor issuer to Enterprise
Products Operating L.P., the “ Base Indenture
”), and the Twelfth Supplemental Indenture and the Thirteenth
Supplemental Indenture, each to be dated as of the Delivery Date
(such Twelfth Supplemental Indenture and Thirteenth Supplemental
Indenture, collectively, the “ Supplemental Indentures
”) (the Base Indenture, as amended and supplemented as of the
Delivery Date, the “ Indenture ”).
This is to confirm the agreement
among the Partnership, Enterprise Products OLPGP, Inc., a Delaware
corporation (the “ OLPGP ”), and the Operating
LLC (collectively with the
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Partnership and the OLPGP, the “ Enterprise Parties
”), and the Underwriters concerning the purchase of the
Securities from the Partnership and the Operating LLC by the
Underwriters.
1. Representations,
Warranties and Agreements of the Enterprise Parties . Each
of the Enterprise Parties jointly and severally represents and
warrants to, and agrees with, the Underwriters that:
(a) A registration statement on
Form S-3 (File No. 333-145709) relating to the Securities (i)
has been prepared by the Partnership and the Operating LLC pursuant
to the requirements of the Securities Act of 1933, as amended (the
“ Securities Act ”), and the rules and
regulations (the “ Rules and Regulations ”) of
the Securities and Exchange Commission (the “
Commission ”) thereunder; (ii) has been filed
with the Commission under the Securities Act; and (iii) is
effective under the Securities Act. Copies of such registration
statement and any amendment thereto have been made available by the
Partnership and the Operating LLC to you as the representatives
(the “ Representatives ”) of the Underwriters.
As used in this Agreement:
(i) “ Applicable Time
” means 5:20 p.m. (New York City time) on the date of this
Agreement;
(ii) “ Base Prospectus
” means the base prospectus included in the Registration
Statement at the Applicable Time;
(ii) “ Effective Date
” means any date as of which any part of such registration
statement relating to the Securities became, or is deemed to have
become, effective under the Securities Act in accordance with the
Rules and Regulations (including, for the avoidance of doubt, any
effective date with respect to the Underwriters);
(iii) “ Issuer Free Writing
Prospectus ” means each “free writing
prospectus” (as defined in Rule 405 of the Rules and
Regulations) or “issuer free writing prospectus” (as
defined in Rule 433 of the Rules and Regulations) prepared by
or on behalf of the Partnership or the Operating LLC or used or
referred to by the Partnership or the Operating LLC in connection
with the offering of the Securities;
(iv) “ Preliminary
Prospectus ” means any preliminary prospectus relating to
the Securities included in such registration statement or filed
with the Commission pursuant to Rule 424(b) of the Rules and
Regulations, including the Base Prospectus and any preliminary
prospectus supplement thereto relating to the Securities;
(v) “ Pricing Disclosure
Package ” means (i) the Base Prospectus,
(ii) the Preliminary Prospectus as amended or supplemented as
of the Applicable Time, (iii) the Issuer Free Writing
Prospectuses, if any, identified in Schedule II hereto,
and (iv) the final term sheet attached as
Schedule IV hereto.
(vi) “ Prospectus
” means the final prospectus relating to the Securities,
including the Base Prospectus and any prospectus supplement thereto
relating to the Securities, as filed with the Commission pursuant
to Rule 424(b) of the Rules and Regulations; and
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(vii) “ Registration
Statement ” means, collectively, the various parts of the
registration statement referred to in this Section 1(a), each
as amended as of the Effective Date for such part, including any
Preliminary Prospectus or the Prospectus and all exhibits to such
registration statement.
Any
reference to any Preliminary Prospectus, the Pricing Disclosure
Package or the Prospectus shall be deemed to refer to and include
any documents incorporated by reference therein pursuant to Form
S-3 under the Securities Act as of the date of such Preliminary
Prospectus or the Prospectus, as the case may be, or in the case of
the Pricing Disclosure Package, as of the Applicable Time. Any
reference to the “ most recent Preliminary Prospectus
” shall be deemed to refer to the latest Preliminary
Prospectus included in the Registration Statement or filed pursuant
to Rule 424(b) on or prior to the date hereof. Any reference to any
amendment or supplement to any Preliminary Prospectus or the
Prospectus shall be deemed to refer to and include any document
filed under the Securities Exchange Act of 1934, as amended (the
“ Exchange Act ”), after the date of such
Preliminary Prospectus or the Prospectus, as the case may be, and
incorporated by reference in such Preliminary Prospectus or the
Prospectus, as the case may be; and any reference to any amendment
to the Registration Statement shall be deemed to include the most
recent annual report of the Partnership on Form 10-K filed with the
Commission pursuant to Section 13(a) or 15(d) of the Exchange Act
after the original Effective Date that is incorporated by reference
in the Registration Statement. The Commission has not issued any
order preventing or suspending the use of any Preliminary
Prospectus or the Prospectus or suspending the effectiveness of the
Registration Statement, and no proceeding or examination for such
purpose has been instituted or, to the Partnership’s
knowledge, threatened by the Commission. The Commission has not
notified the Partnership or the Operating LLC of any objection to
the use of the form of the Registration Statement.
(b) Well-Known Seasoned
Issuer and Not an Ineligible Issuer . Each of the Partnership
and the Operating LLC were at the time of the initial filing of the
Registration Statement and continue to be a “well-known
seasoned issuers” (as defined in Rule 405 under the
Securities Act) eligible to use an “automatic shelf
registration statement” (as defined in Rule 405 under
the Securities Act) for the registration of the Securities,
including not having been an “ineligible issuer” (as
defined in Rule 405 under the Securities Act) at any such time
or date. Neither the Partnership nor the Operating LLC has received
from the Commission any notice pursuant to Rule 401(g)(2)
under the Securities Act objecting to the use of the automatic
shelf registration statement form. The Registration Statement is
not the subject of a pending proceeding or examination under
Section 8(d) or 8(e) of the Securities Act, and neither the
Partnership nor the Operating LLC is the subject of a pending
proceeding under Section 8A of the Securities Act in
connection with the offering of the Securities.
(c) Form of Documents.
The Registration Statement conformed and will conform in all
material respects on each Effective Date and on the Delivery Date,
and any amendment to the Registration Statement filed after the
date hereof will conform in all material respects when filed, to
the requirements of the Securities Act and the Rules and
Regulations. The most recent Preliminary Prospectus conformed, and
the Prospectus will conform, in all material respects when filed
with the Commission pursuant to Rule 424(b) to the requirements of
the Securities Act and the Rules and Regulations. The documents
incorporated by reference in any Preliminary Prospectus or the
Prospectus conformed, and any further documents so incorporated
will
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conform,
when filed with the Commission, in all material respects to the
requirements of the Exchange Act or the Securities Act, as
applicable, and the rules and regulations of the Commission
thereunder. The Registration Statement and the Prospectus conform
in all material respects to the requirements applicable to them
under the Trust Indenture Act of 1939, as amended (the “Trust
Indenture Act”).
(d) Registration
Statement. The Registration Statement did not, as of each
Effective Date, contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading; provided
that no representation or warranty is made as to information
contained in or omitted from the Registration Statement in reliance
upon and in conformity with written information furnished to the
Partnership and the Operating LLC through the Representatives by or
on behalf of any Underwriter specifically for inclusion therein,
which information is specified in Section 8(b).
(e) Prospectus. The
Prospectus will not, as of its date and on the Delivery Date,
contain an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not
misleading; provided that no representation or warranty is made as
to information contained in or omitted from the Prospectus in
reliance upon and in conformity with written information furnished
to the Partnership and the Operating LLC through the
Representatives by or on behalf of any Underwriter specifically for
inclusion therein, which information is specified in
Section 8(b).
(f) Documents Incorporated
by Reference. The documents incorporated by reference in any
Preliminary Prospectus or the Prospectus did not, and any further
documents filed and incorporated by reference therein will not,
when filed with the Commission, contain an untrue statement of a
material fact or omit to state a material fact necessary in order
to make the statements therein, in the light of the circumstances
under which they were made, not misleading.
(g) Pricing Disclosure
Package. The Pricing Disclosure Package did not, as of the
Applicable Time, contain an untrue statement of a material fact or
omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which
they were made, not misleading; provided that no representation or
warranty is made as to information contained in or omitted from the
Pricing Disclosure Package in reliance upon and in conformity with
written information furnished to the Partnership and the Operating
LLC through the Representatives by or on behalf of any Underwriters
specifically for inclusion therein, which information is specified
in Section 8(b).
(h) Issuer Free Writing
Prospectus and Pricing Disclosure Package. Each Issuer Free
Writing Prospectus (including, without limitation, any road show
that is a free writing prospectus under Rule 433), when
considered together with the Pricing Disclosure Package as of the
Applicable Time, did not contain an untrue statement of a material
fact or omit to state a material fact necessary in order to make
the statements therein, in the light of the circumstances under
which they were made, not misleading; provided that no
representation or warranty is made as to information contained in
or omitted from any Issuer Free Writing Prospectus in reliance upon
and in conformity with written information furnished to the
Partnership and the
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Operating LLC through the Representatives by or on behalf of any
Underwriters specifically for inclusion therein, which information
is specified in Section 8(b).
(i) Each Issuer Free Writing
Prospectus . Each Issuer Free Writing Prospectus conformed or
will conform in all material respects to the requirements of the
Securities Act and the Rules and Regulations on the date of first
use, and the Partnership has complied with any filing requirements
applicable to such Issuer Free Writing Prospectus pursuant to the
Rules and Regulations. Neither the Partnership nor the Operating
LLC has made any offer relating to the Securities that would
constitute an Issuer Free Writing Prospectus without the prior
written consent of the Representatives, except as set forth on
Schedule IV hereto. The Partnership and the Operating
LLC have retained in accordance with the Rules and Regulations all
Issuer Free Writing Prospectuses that were not required to be filed
pursuant to the Rules and Regulations (it being understood that, as
of the date hereof, the Partnership and the Operating LLC have not
retained any Issuer Free Writing Prospectus for the three-year
period required thereby). Each Issuer Free Writing Prospectus does
not and will not include any information that conflicts with the
information contained in the Registration Statement or the Pricing
Disclosure Package, including any document incorporated therein and
any prospectus supplement deemed to be a part thereof that has not
been superseded or modified. The foregoing sentence does not apply
to statements in or omissions from any Issuer Free Writing
Prospectus based upon and in conformity with written information
furnished to the Partnership and the Operating LLC by the
Underwriters through the Representatives specifically for inclusion
therein, which information consists solely of the information
specified in Section 8(b).
(j) Formation and
Qualification of the Partnership Entities . Each of Enterprise
Products GP, LLC, a Delaware limited liability company (the “
General Partner ”), the Partnership, the OLPGP, the
Operating LLC and their respective subsidiaries listed on
Schedule III hereto (each, a “ Partnership
Entity ” and collectively, the “ Partnership
Entities, ” and the subsidiaries of the Partnership
listed on Schedule III hereto, the “
Subsidiaries ”) has been duly formed or incorporated,
as the case may be, and is validly existing in good standing under
the laws of its respective jurisdiction of formation or
incorporation, as the case may be, with all corporate, limited
liability company or partnership, as the case may be, power and
authority necessary to own or hold its properties and conduct the
businesses in which it is engaged and, in the case of the General
Partner and the OLPGP, to act as general partner of the Partnership
and managing member of the Operating LLC, respectively, in each
case in all material respects as described in the Registration
Statement, the Pricing Disclosure Package and the Prospectus. Each
Partnership Entity is duly registered or qualified to do business
and is in good standing as a foreign corporation, limited liability
company or limited partnership, as the case may be, in each
jurisdiction in which its ownership or lease of property or the
conduct of its businesses requires such qualification or
registration, except where the failure to so qualify or register
would not, individually or in the aggregate, have a material
adverse effect on the condition (financial or otherwise), results
of operations, business or prospects of the Partnership Entities
taken as a whole (a “ Material Adverse Effect ”)
or subject the limited partners of the Partnership to any material
liability or disability.
(k) Ownership of General
Partner . Enterprise GP Holdings L.P., a Delaware limited
partnership (“ EPE ”), owns 100% of the issued
and outstanding membership interests in the General Partner; such
membership interests have been duly authorized and validly issued
in
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accordance with the limited liability company agreement of the
General Partner, as amended and/or restated on or prior to the date
hereof (the “ GP LLC Agreement ”); and EPE owns
such membership interests free and clear of all liens,
encumbrances, security interests, equities, charges or claims other
than those in favor of lenders of EPE.
(l) Ownership of General
Partner Interest in the Partnership . The General Partner is
the sole general partner of the Partnership with a 2.0% general
partner interest in the Partnership (including the right to receive
Incentive Distributions (as defined in the Partnership Agreement)
(the “ Incentive Distribution Rights ”)); such
general partner interest has been duly authorized and validly
issued in accordance with the agreement of limited partnership of
the Partnership, as amended and/or restated on or prior to the date
hereof (the “ Partnership Agreement ”); and the
General Partner owns such general partner interest free and clear
of all liens, encumbrances, security interests, equities, charges
or claims.
(m) Ownership of the
OLPGP . The Partnership owns 100% of the issued and outstanding
capital stock in the OLPGP; such capital stock has been duly
authorized and validly issued in accordance with the bylaws of the
OLPGP, as amended or restated on or prior to the date hereof (the
“ OLPGP Bylaws ”), and the certificate of
incorporation of the OLPGP, as amended and restated on or prior to
the date hereof (the “ OLPGP Certificate of
Incorporation ”), and is fully paid and non-assessable;
and the Partnership owns such capital stock free and clear of all
liens, encumbrances, security interests, equities, charges or
claims.
(n) Ownership of Operating
LLC . The OLPGP owns 0.001% of the membership interests in the
Operating LLC and the Partnership owns 99.999% of the membership
interests in the Operating LLC; such membership interests have been
duly authorized and validly issued in accordance with the agreement
of limited liability company agreement of the Operating LLC, as
amended and/or restated on or prior to the date hereof (the “
Operating LLC Agreement ”) and are fully paid and
non-assessable (except as such non-assessability may be affected by
Section 18-607 of the Delaware LLC Act); and the OLPGP and the
Partnership own such membership interests free and clear of all
liens, encumbrances, security interests, equities, charges or
claims.
(o) No Registration
Rights . Neither the filing of the Registration Statement nor
the offering of the Securities as contemplated by this Agreement
gives rise to any rights for or relating to the registration of any
securities of the Partnership, the Operating LLC or any of their
Subsidiaries, except such rights as have been waived.
(p) Authority . Each of
the Enterprise Parties has all requisite power and authority to
execute and deliver this Agreement and to perform its respective
obligations hereunder, and the Partnership and the Operating LLC
have all requisite power and authority to execute and deliver the
Base Indenture and the Supplemental Indentures and to perform their
respective obligations thereunder. The Partnership and the
Operating LLC have all requisite power and authority to issue, sell
and deliver the Guarantees and the Notes, respectively, in
accordance with and upon the terms and conditions set forth in this
Agreement, the Partnership Agreement, the Operating LLC Agreement,
the Indenture, the Registration Statement, the Pricing Disclosure
Package and Prospectus. All action required to be taken by the
Enterprise Parties or any of their security holders, partners or
members for (i) the due and proper authorization, execution and
delivery of this Agreement and the Indenture, (ii) the
authorization, issuance, sale and delivery of the
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Securities and (iii) the consummation of the transactions
contemplated hereby and thereby has been duly and validly
taken.
(q) Ownership of
Subsidiaries . All of the outstanding shares of capital stock,
partnership interests or membership interests, as the case may be,
of each Subsidiary have been duly and validly authorized and
issued, and are fully paid and non-assessable (except as such
non-assessability may be affected by Section 17-607 of the
Delaware LP Act, in the case of partnership interests, or
Section 18-607 of the Delaware LLC Act, in the case of
membership interests, and except as otherwise disclosed in the
Pricing Disclosure Package and the Prospectus). Except as described
in the Pricing Disclosure Package and the Prospectus, the
Partnership and the Operating LLC, as the case may be, directly or
indirectly, owns the shares of capital stock, partnership interests
or membership interests in each Subsidiary as set forth on
Schedule III hereto free and clear of all liens,
encumbrances (other than contractual restrictions on transfer
contained in the applicable constituent documents), security
interests, equities, charges, claims or restrictions upon voting or
any other claim of any third party. None of the Enterprise Parties
has any subsidiaries other than as set forth on
Schedule III hereto that, individually or in the
aggregate, would be deemed to be a “ significant
subsidiary ” as such term is defined in Rule 405 of
the Securities Act.
(r) Authorization, Execution
and Delivery of Agreement . This Agreement has been duly
authorized and validly executed and delivered by each of the
Enterprise Parties.
(s) Authorization, Execution
and Enforceability of Agreements . (i) The GP LLC
Agreement has been duly authorized, executed and delivered by EPE
and is a valid and legally binding agreement of EPE, enforceable
against EPE in accordance with its terms, (ii) the Partnership
Agreement has been duly authorized, executed and delivered by the
General Partner and is a valid and legally binding agreement of the
General Partner, enforceable against the General Partner in
accordance with its terms; and (iii) the Operating LLC
Agreement has been duly authorized, executed and delivered by each
of the OLPGP and the Partnership and is a valid and legally binding
agreement of each of the OLPGP and the Partnership, enforceable
against each of the OLPGP and the Partnership in accordance with
its terms; provided that, with respect to each such agreement
listed in this Section (s)(i)-(iii), the enforceability thereof may
be limited by bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws relating to or
affecting creditors’ rights generally and by general
principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).
(t) Enforceability of
Indenture. The Base Indenture has been duly authorized,
executed and delivered by (i) the Partnership and
(ii) the predecessor of the Operating LLC and the Operating
LLC, as applicable. Each of the Supplemental Indentures has been
duly authorized, executed and delivered by each of the Partnership
and the Operating LLC. The execution and delivery of, and the
performance by the Operating LLC and the Partnership of their
respective obligations under the Indenture have been duly and
validly authorized by each of the Operating LLC and the
Partnership. The Indenture, assuming due authorization, execution
and delivery thereof by the Trustee, when executed and delivered by
the Operating LLC and the Partnership, will constitute a valid and
legally binding agreement of the Operating LLC and the Partnership,
enforceable against the Operating LLC and the Partnership in
accordance with its terms; provided that, the enforceability
thereof may be limited by bankruptcy, insolvency,
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fraudulent transfer, reorganization, moratorium and similar laws
relating to or affecting creditors’ rights generally and by
general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).
The Indenture is duly qualified under the Trust Indenture
Act.
(u) Valid Issuance of the
Notes. The Notes have been duly authorized for issuance and
sale to the Underwriters, and, when executed by the Operating LLC
and authenticated by the Trustee in accordance with the provisions
of the Indenture and delivered to and paid for by the Underwriters
in accordance with the terms of this Agreement, will have been duly
executed and delivered by the Operating LLC, and will constitute
the valid and legally binding obligations of the Operating LLC
entitled to the benefits of the Indenture and enforceable against
the Operating LLC in accordance with their terms; provided that,
the enforceability thereof may be limited by bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and
similar laws relating to or affecting creditors’ rights
generally and by general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity
or at law).
(v) Valid Issuance of the
Guarantees. The Guarantees by the Partnership have been duly
authorized by the General Partner on behalf of the Partnership and,
on the Delivery Date, will have been duly executed and delivered by
the Partnership; when the Notes have been issued, executed and
authenticated in accordance with the Indenture and delivered to and
paid for by the Underwriters in accordance with the terms of this
Agreement, the Guarantees will constitute the valid and legally
binding obligations of the Partnership entitled to the benefits of
the Indenture and will be enforceable against the Partnership in
accordance with their terms; provided that, the enforceability
thereof may be limited by bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws relating to
or affecting creditors’ rights generally and by general
principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).
(w) No Conflicts or
Violations. None of the (i) offering, issuance and sale by
the Operating LLC and the Partnership of the Securities,
(ii) the execution, delivery and performance of this
Agreement, the Indenture and the Securities by the Enterprise
Parties that are parties hereto or thereto, or
(iii) consummation of the transactions contemplated hereby and
thereby (A) conflicts or will conflict with or constitutes or
will constitute a violation of the certificate of limited
partnership or agreement of limited partnership, certificate of
formation or limited liability company agreement, certificate or
articles of incorporation or bylaws or other organizational
documents of any of the Partnership Entities, (B) conflicts or
will conflict with or constitutes or will constitute a breach or
violation of, or a default (or an event that, with notice or lapse
of time or both, would constitute such a default) under, any
indenture, mortgage, deed of trust, loan agreement, lease or other
agreement or instrument to which any of the Partnership Entities is
a party or by which any of them or any of their respective
properties or assets may be bound, (C) violates or will violate any
statute, law or regulation or any order, judgment, decree or
injunction of any court, arbitrator or governmental agency or body
having jurisdiction over any of the Partnership Entities or any of
their respective properties or assets, or (D) results or will
result in the creation or imposition of any lien, charge or
encumbrance upon any property or assets of any of the Partnership
Entities, which conflicts, breaches, violations, defaults or liens,
in the case of clauses (B) or (D) , would,
individually or in the aggregate, have a Material Adverse
Effect.
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(x) No Consents. No
permit, consent, approval, authorization, order, registration,
filing or qualification (“ consent ”) of or with
any court, governmental agency or body having jurisdiction over the
Partnership Entities or any of their respective properties is
required in connection with (i) the offering, issuance and
sale by the Operating LLC and the Partnership of the Securities in
the manner contemplated in this Agreement and in the Registration
Statement, the Pricing Disclosure Package and the Prospectus,
(ii) the execution, delivery and performance of this
Agreement, the Indenture and the Securities by the Enterprise
Parties that are parties thereto or (iii) the consummation by
the Enterprise Parties of the transactions contemplated by this
Agreement, the Indenture and the Securities, except for
(A) such consents required under the Securities Act, the
Exchange Act, the Trust Indenture Act (all of which have been
obtained) and state securities or Blue Sky laws in connection with
the purchase and distribution of the Securities by the Underwriters
and (B) such consents that have been, or prior to the Delivery
Date (as defined herein) will be, obtained.
(y) No Default . None of
the Partnership Entities is (i) in violation of its
certificate of limited partnership or agreement of limited
partnership, certificate of formation or limited liability company
agreement, certificate or articles of incorporation or bylaws or
other organizational documents, (ii) in violation of any law,
statute, ordinance, administrative or governmental rule or
regulation applicable to it or of any order, judgment, decree or
injunction of any court or governmental agency or body having
jurisdiction over it or has failed to obtain any license, permit,
certificate, franchise or other governmental authorization or
permit necessary to the ownership of its property or to the conduct
of its business, or (iii) in breach, default (and no event
that, with notice or lapse of time or both, would constitute such a
default has occurred or is continuing) or violation in the
performance of any obligation, agreement or condition contained in
any bond, debenture, note or any other evidence of indebtedness or
in any agreement, indenture, lease or other instrument to which it
is a party or by which it or any of its properties may be bound,
which breach, default or violation, in the case of clause
(ii) or (iii), would, if continued, have a Material Adverse
Effect, or could materially impair the ability of any of the
Partnership Entities to perform their obligations under this
Agreement or the Base Indenture together with the Supplemental
Indentures.
(z) Independent Registered
Public Accounting Firm . Deloitte & Touche LLP, who has
audited the audited financial statements contained or incorporated
by reference in the Registration Statement, the Pricing Disclosure
Package and the Prospectus, is an independent registered public
accounting firm with respect to the Partnership and the General
Partner within the meaning of the Securities Act and the applicable
rules and regulations thereunder adopted by the Commission and the
Public Company Accounting Oversight Board (United States) (the
“ PCAOB ”).
(aa) Financial
Statements . The historical financial statements (including the
related notes and supporting schedule) contained or incorporated by
reference in the Registration Statement, the Pricing Disclosure
Package and the Prospectus (i) comply in all material respects
with the applicable requirements under the Securities Act and the
Exchange Act (except that certain supporting schedules are
omitted), (ii) present fairly in all material respects the
financial position, results of operations and cash flows of the
entities purported to be shown thereby on the basis stated therein
at the respective dates or for the respective periods, and
(iii) have been prepared in accordance with accounting
principles generally accepted in the United States of
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America
consistently applied throughout the periods involved, except to the
extent disclosed therein. The other financial information of the
General Partner and the Partnership and its subsidiaries, including
non-GAAP financial measures, if any, contained or incorporated by
reference in the Registration Statement, the Pricing Disclosure
Package and the Prospectus has been derived from the accounting
records of the General Partner, the Partnership and its
subsidiaries, and fairly presents the information purported to be
shown thereby. Nothing has come to the attention of any of the
Partnership Entities that has caused them to believe that the
statistical and market-related data included in the Registration
Statement, the most recent Preliminary Prospectus and the
Prospectus is not based on or derived from sources that are
reliable and accurate in all material respects.
(bb) No Distribution of
Other Offering Materials . None of the Partnership Entities has
distributed or, prior to the completion of the distribution of the
Securities, will distribute, any offering material in connection
with the offering and sale of the Securities other than the
Registration Statement, any Preliminary Prospectus, the Prospectus,
any Issuer Free Writing Prospectus to which the Representatives
have consented in accordance with Section 1(i), 5(b) or 5(l)
and the Issuer Free Writing Prospectus set forth on
Schedule IV hereto and any other materials, if any,
permitted by the Securities Act, including Rule 134 of the
Rules and Regulations.
(cc) Conformity to
Description of the Securities . The Securities, when issued and
delivered against payment therefor as provided in this Agreement
and in the Indenture, will conform in all material respects to the
descriptions thereof contained or incorporated by reference in the
Registration Statement, the Pricing Disclosure Package and the
Prospectus.
(dd) Certain
Transactions . Except as disclosed in the Prospectus and the
Pricing Disclosure Package, subsequent to the respective dates as
of which such information is given in the Registration Statement
and the Pricing Disclosure Package, (i) none of the
Partnership Entities has incurred any liability or obligation,
indirect, direct or contingent, or entered into any transactions,
not in the ordinary course of business, that, individually or in
the aggregate, is material to the Partnership Entities, taken as a
whole, and (ii) there has not been any material change in the
capitalization or material increase in the long-term debt of the
Partnership Entities, or any dividend or distribution of any kind
declared, paid or made by the Partnership on any class of its
partnership interests.
(ee) No Omitted
Descriptions; Legal Descriptions . There are no legal or
governmental proceedings pending or, to the knowledge of the
Enterprise Parties, threatened or contemplated, against any of the
Partnership Entities, or to which any of the Partnership Entities
is a party, or to which any of their respective properties or
assets is subject, that are required to be described in the
Registration Statement, the Pricing Disclosure Package or the
Prospectus but are not described as required, and there are no
agreements, contracts, indentures, leases or other instruments that
are required to be described in the Registration Statement, the
Pricing Disclosure Package or the Prospectus or to be filed as an
exhibit to the Registration Statement that are not described or
filed as required by the Securities Act or the Rules and
Regulations or the Exchange Act or the rules and regulations
thereunder. The statements included in or incorporated by reference
into the Registration Statement, the Pricing Disclosure Package and
the Prospectus under the headings “Description of the
Notes,” “Description of Debt Securities,”
10
“Certain ERISA Considerations” and “Material U.S.
Tax Consequences,” insofar as such statements summarize legal
matters, agreements, documents or proceedings discussed therein,
are accurate and fair summaries of such legal matters, agreements,
documents or proceedings.
(ff) Title to Properties
. Each Partnership Entity has (i) good and indefeasible title
to all its interests in its properties that are material to the
operations of the Partnership Entities, taken as a whole, and
(ii) good and marketable title in fee simple to, or valid
rights to lease or otherwise use, all items of other real and
personal property which are material to the business of the
Partnership Entities, in each case free and clear of all liens,
encumbrances, claims and defects and imperfections of title except
such as (A) do not materially affect the value of such
property and do not materially interfere with the use made and
proposed to be made of such property by the Partnership Entities,
(B) could not reasonably be expected to have a Material
Adverse Effect or (C) are described, and subject to the
limitations contained, in the Pricing Disclosure Package.
(gg) Rights-of-Way .
Each of the Partnership Entities has such consents, easements,
rights-of-way or licenses from any person (“
rights-of-way ”) as are necessary to conduct its
business in the manner described in the Pricing Disclosure Package
and the Prospectus, subject to such qualifications as may be set
forth in the Pricing Disclosure Package and the Prospectus and
except for such rights-of-way the failure of which to have obtained
would not have, individually or in the aggregate, a Material
Adverse Effect; each of the Partnership Entities has fulfilled and
performed all its material obligations with respect to such
rights-of-way and no event has occurred which allows, or after
notice or lapse of time would allow, revocation or termination
thereof or would result in any impairment of the rights of the
holder of any such rights-of-way, except for such revocations,
terminations and impairments that will not have a Material Adverse
Effect, subject in each case to such qualification as may be set
forth in the Pricing Disclosure Package and the Prospectus; and,
except as described in the Pricing Disclosure Package and the
Prospectus, none of such rights-of-way contains any restriction
that is materially burdensome to the Partnership Entities, taken as
a whole.
(hh) Permits . Each of
the Partnership Entities has such permits, consents, licenses,
franchises, certificates and authorizations of governmental or
regulatory authorities (“ permits ”) as are
necessary to own or lease its properties and to conduct its
business in the manner described in the Pricing Disclosure Package
and the Prospectus, subject to such qualifications as may be set
forth in the Pricing Disclosure Package and the Prospectus and
except for such permits that, if not obtained, would not have,
individually or in the aggregate, a Material Adverse Effect; each
of the Partnership Entities has fulfilled and performed all its
material obligations with respect to such permits in the manner
described, and subject to the limitations contained in the Pricing
Disclosure Package and the Prospectus, and no event has occurred
that would prevent the permits from being renewed or reissued or
that allows, or after notice or lapse of time would allow,
revocation or termination thereof or results or would result in any
impairment of the rights of the holder of any such permit, except
for such non-renewals, non-issues, revocations, terminations and
impairments that would not, individually or in the aggregate, have
a Material Adverse Effect. None of the Partnership Entities has
received notification of any revocation or modification of any such
permit or has any reason to believe that any such permit will not
be renewed in the ordinary course.
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(ii) Books and Records;
Accounting Controls . The Partnership Entities (i) make
and keep books, records and accounts that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of
assets, and (ii) maintain systems of internal accounting
controls sufficient to provide reasonable assurances that
(A) transactions are executed in accordance with
management’s general or specific authorization;
(B) transactions are recorded as necessary to permit
preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America and
to maintain accountability for assets; (C) access to assets is
permitted only in accordance with management’s general or
specific authorization; and (D) the recorded accountability
for assets is compared with existing assets at reasonable intervals
and appropriate action is taken with respect to any
differences.
(jj) Related Party
Transactions . No relationship, direct or indirect, exists
between or among the Partnership Entities on the one hand, and the
directors, officers, partners, customers or suppliers of the
General Partner and its affiliates (other than the Partnership
Entities) on the other hand, which is required to be described in
the Pricing Disclosure Package and the Prospectus and which is not
so described.
(kk) Environmental
Compliance . There has been no storage, generation,
transportation, handling, treatment, disposal or discharge of any
kind of toxic or other wastes or other hazardous substances by any
of the Partnership Entities (or, to the knowledge of the Enterprise
Parties, any other entity (including any predecessor) for whose
acts or omissions any of the Partnership Entities is or could
reasonably be expected to be liable) at, upon or from any of the
property now or previously owned or leased by any of the
Partnership Entities or upon any other property, in violation of
any statute or any ordinance, rule, regulation, order, judgment,
decree or permit or which would, under any statute or any
ordinance, rule (including rule of common law), regulation, order,
judgment, decree or permit, give rise to any liability, except for
any violation or liability that could not reasonably be expected to
have, individually or in the aggregate with all such violations and
liabilities, a Material Adverse Effect; and there has been no
disposal, discharge, emission or other release of any kind onto
such property or into the environment surrounding such property of
any toxic or other wastes or other hazardous substances with
respect to which any of the Enterprise Parties has knowledge,
except for any such disposal, discharge, emission or other release
of any kind which could not reasonably be expected to have,
individually or in the aggregate with all such discharges and other
releases, a Material Adverse Effect.
(ll) Insurance . The
Partnership Entities maintain insurance covering their properties,
operations, personnel and businesses against such losses and risks
as are reasonably adequate to protect them and their businesses in
a manner consistent with other businesses similarly situated.
Except as disclosed in the Pricing Disclosure Package and the
Prospectus, none of the Partnership Entities has received notice
from any insurer or agent of such insurer that substantial capital
improvements or other expenditures will have to be made in order to
continue such insurance; all such insurance is outstanding and duly
in force on the date hereof and will be outstanding and duly in
force on the Delivery Date.
(mm) Litigation . There
are no legal or governmental proceedings pending to which any
Partnership Entity is a party or of which any property or assets of
any Partnership Entity is the subject that, individually or in the
aggregate, if determined adversely to such Partnership
Entity,
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could
reasonably be expected to have a Material Adverse Effect; and to
the knowledge of the Enterprise Parties, no such proceedings are
threatened or contemplated by governmental authorities or
threatened by others.
(nn) No Labor Disputes .
No labor dispute with the employees that are engaged in the
business of the Partnership or its subsidiaries exists or, to the
knowledge of the Enterprise Parties, is imminent or threatened that
is reasonably likely to result in a Material Adverse Effect.
(oo) Intellectual
Property . Each Partnership Entity owns or possesses adequate
rights to use all material patents, patent applications,
trademarks, service marks, trade names, trademark registrations,
service mark registrations, copyrights, licenses and know-how
(including trade secrets and other unpatented and/or unpatentable
proprietary or confidential information, systems or procedures)
necessary for the conduct of their respective businesses; and the
conduct of their respective businesses will not conflict in any
material respect with, and no Partnership Entity has received any
notice of any claim of conflict with, any such rights of
others.
(pp) Investment Company
. None of the Partnership Entities is now, or after sale of the
Securities to be sold by the Partnership and the Operating LLC
hereunder and application of the net proceeds from such sale as
described in the most recent Preliminary Prospectus under the
caption “Use of Proceeds” will be, an “
investment company ” or a company “
controlled by ” an “ investment company
” within the meaning of the Investment Company Act of 1940,
as amended (the “ Investment Company Act
”).
(qq) Absence of Certain
Actions . No action has been taken and no statute, rule,
regulation or order has been enacted, adopted or issued by any
governmental agency or body which prevents the issuance or sale of
the Securities in any jurisdiction; no injunction, restraining
order or order of any nature by any federal or state court of
competent jurisdiction has been issued with respect to any
Partnership Entity which would prevent or suspend the issuance or
sale of the Securities or the use of the Pricing Disclosure Package
in any jurisdiction; no action, suit or proceeding is pending
against or, to the knowledge of the Enterprise Parties, threatened
against or affecting any Partnership Entity before any court or
arbitrator or any governmental agency, body or official, domestic
or foreign, which could reasonably be expected to interfere with or
adversely affect the issuance of the Securities or in any manner
draw into question the validity or enforceability of this Agreement
or the Indenture or any action taken or to be taken pursuant hereto
or thereto; and the Partnership and the Operating LLC have complied
with any and all requests by any securities authority in any
jurisdiction for additional information to be included in the most
recent Preliminary Prospectus.
(rr) No Stabilizing
Transactions . None of the General Partner, the Partnership,
the Operating LLC or any of their affiliates has taken, directly or
indirectly, any action designed to or which has constituted or
which would reasonably be expected to cause or result, under the
Exchange Act or otherwise, in stabilization or manipulation of the
price of any securities of the Partnership or the Operating LLC to
facilitate the sale or resale of the Securities.
(ss) Form S-3 . The
conditions for the use of Form S-3 by the Partnership and the
Operating LLC, as set forth in the General Instructions thereto,
have been satisfied.
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(tt) Disclosure Controls
. The General Partner and the Partnership have established and
maintain disclosure controls and procedures (as such term is
defined in Rule 13a-15(e) and 15d-15(e) under the Exchange
Act) which (i) are designed to ensure that material
information relating to the Partnership, including its consolidated
subsidiaries, is made known to the General Partner’s
principal executive officer and its principal financial officer by
others within those entities, particularly during the periods in
which the periodic reports required under the Exchange Act are
being prepared; (ii) have been evaluated for effectiveness as
of the end of the period covered by the Partnership’s most
recent annual report filed with the Commission; and (iii) are
effective in achieving reasonable assurances that the
Partnership’s desired control objectives as described in
Item 9A of the Partnership’s Annual Report on Form 10-K
for the period ended December 31, 2007 (the “ 2007
Annual Report ”) have been met.
(uu) No Deficiency in
Internal Controls . Based on the evaluation of its internal
controls and procedures conducted in connection with the
preparation and filing of the 2007 Annual Report, neither the
Partnership nor the General Partner is aware of (i) any
significant deficiencies or material weaknesses in the design or
operation of its internal controls over financial reporting (as
defined in Rule 13a-15(f) and 15d-15(f) under the Exchange
Act) that are likely to adversely affect the Partnership’s
ability to record, process, summarize and report financial data; or
(ii) any fraud, whether or not material, that involves management
or other employees who have a role in the Partnership’s
internal controls over financial reporting.
(vv) No Changes in Internal
Controls . Since the date of the most recent evaluation of the
disclosure controls and procedures described in Section 1(tt)
hereof, there have been no significant changes in the
Partnership’s internal controls that materially affected or
are reasonably likely to materially affect the Partnership’s
internal controls over financial reporting.
(ww) Sarbanes-Oxley Act
. The principal executive officer and principal financial officer
of the General Partner have made all certifications required by the
Sarbanes-Oxley Act of 2002 (the “ Sarbanes-Oxley Act
”) and any related rules and regulations promulgated by the
Commission, and the statements contained in any such certification
are complete and correct. The Partnership and the General Partner
are otherwise in compliance in all material respects with all
applicable provisions of the Sarbanes-Oxley Act that are
effective.
(xx) Rating of Notes. In
accordance with Rule 2720(c)(3)(C) of the Conduct Rules of the
National Association of Securities Dealers, Inc., the Notes have
been rated in an investment grade category by Moody’s
Investors Service, Fitch Ratings and Standard & Poor’s
Ratings Services.
Any
certificate signed by any officer of any Enterprise Party and
delivered to the Representatives or counsel for the Underwriters
pursuant to this Agreement shall be deemed a representation and
warranty by the Enterprise Parties signatory thereto, as to the
matters covered thereby, to each Underwriter.
2. Purchase and Sale of the
Notes . On the basis of the representations and
warranties contained in, and subject to the terms and conditions
of, this Agreement, the Operating LLC agrees to issue and sell the
Notes to the several Underwriters and each of the Underwriters,
severally and not jointly, agrees to purchase from the Operating
LLC (i) the
14
principal amount of the Notes due 2013 set forth opposite that
Underwriter’s name in Schedule I hereto at a
price equal to 99.306% of the principal amount thereof and
(ii) the principal amount of the Notes due 2019 set forth
opposite that Underwriter’s name in Schedule I
hereto at a price equal to 99.216% of the principal amount thereof,
in each case, plus accrued interest, if any, from the Delivery
Date. The Operating LLC shall not be obligated to deliver any of
the Notes except upon payment for all the Notes to be purchased as
provided herein.
The Operating LLC understands that
the Underwriters intend to make a public offering of the Notes as
soon after the effectiveness of this Agreement as in the judgment
of the Representatives is advisable, and initially to offer the
Notes on the terms and conditions set forth in the Pricing
Disclosure Package and the Prospectus.
3. Offering of Securities
by the Underwriters . It is understood that the
Underwriters propose to offer the Securities for sale to the public
as set forth in the Prospectus.
4. Delivery of and
Payment for the Notes . Delivery of and payment for the
Notes shall be made at the office of Andrews Kurth LLP, Houston,
Texas, at 10:00 A.M., New York City time, on April 3,
2008 or such other date and time and place as shall be determined
by agreement between the Underwriters and the Partnership and the
Operating LLC (such date and time of delivery and payment for the
Notes being herein called the “ Delivery Date
”). Payment for the Notes shall be made by wire transfer in
immediately available funds to the account(s) specified by the
Partnership and the Operating LLC to the Representatives against
delivery to the nominee of The Depository Trust Company, for the
account of the Underwriters, of one or more global notes
representing the Securities (collectively, the “ Global
Note ”), with any transfer taxes payable in connection
with the sale of the Notes duly paid by the Operating LLC. The
Global Note will be made available for inspection by the
Representatives not later than 1:00 p.m., New York City time, on
the business day prior to the Delivery Date.
5. Further Agreements of
the Parties. Each of the Enterprise Parties covenants and
agrees with the Underwriters:
(a) Preparation of
Prospectus and Registration Statement . (i) To prepare the
Prospectus in a form approved by the Underwriters and to file such
Prospectus pursuant to Rule 424(b) under the Securities Act not
later than Commission’s close of business on the second
business day following the execution and delivery of this Agreement
or, if applicable, such earlier time as may be required by
Rule 430A(a)(3) under the Securities Act; (ii) to make no
further amendment or any supplement to the Registration Statement
or to the Prospectus except as permitted herein; (iii) to
advise the Underwriters, promptly after it receives notice thereof,
of the time when any amendment to the Registration Statement has
been filed or becomes effective or any supplement to the Prospectus
or any amended Prospectus has been filed and to furnish the
Underwriters with copies thereof; (iv) to advise the
Underwriters promptly after it receives notice thereof of the
issuance by the Commission of any stop order or of any order
preventing or suspending the use of the Prospectus or any Issuer
Free Writing Prospectus, of the suspension of the qualification of
the Securities for offering or sale in any jurisdiction, of the
initiation or threatening of any proceeding for any such purpose or
of any request by the Commission for the amending or supplementing
of the Registration Statement, the Prospectus or any Issuer Free
Writing Prospectus or for additional information; and (v) in
the event of the issuance of any stop
15
order or
of any order preventing or suspending the use of the Prospectus or
any Issuer Free Writing Prospectus or suspending any such
qualification, to use promptly its best efforts to obtain its
withdrawal.
(b) Final Term Sheet and
Issuer Free Writing Prospectuses. (i) To prepare a final
term sheet, containing solely a description of final terms of the
Securities and the offering thereof, in the form approve
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