Finance & Investing | Fundraising | Capital Markets

Enbridge Wraps Up $1.6B Offering to Fund Expansion Projects

Share Print Bookmark    |    Tuesday,October 06,2015

Enbridge Energy Partners, L.P.  has closed a public offering of $1.6 billion of senior unsecured notes, comprised of $500 million aggregate principal amount of its notes due October 15, 2020, $500 million aggregate principal amount of its notes due October 15, 2025 and $600 million aggregate principal amount of its notes due October 15, 2045, for net proceeds of approximately $1.575 billion after deducting underwriting discounts and commissions and estimated offering expenses.

Enbridge Partners intends to use the net proceeds from this offering to repay a portion of its outstanding commercial paper, to repay any credit facility borrowings that are outstanding, to fund a portion of its capital expansion projects, to fund the costs associated with unwinding certain interest hedging arrangements and for general partnership purposes or any combination of such purposes. Some or all of the net proceeds of this offering may be invested temporarily in short-term investment grade securities pending their use for such purposes.

The 2020 notes were issued at 99.464 percent of their principal amount and have a fixed-rate interest coupon of 4.375 percent. The 2025 notes were issued at 99.654 percent of their principal amount and have a fixed-rate interest coupon of 5.875 percent. The 2045 notes were issued at 98.665 percent of their principal amount and have a fixed-rate interest coupon of 7.375 percent. The settlement date for the offering was October 6, 2015.

Deutsche Bank Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Mizuho Securities USA Inc., DNB Markets, Inc., Mitsubishi UFJ Securities (USA), Inc., SMBC Nikko Securities America, Inc., Barclays Capital Inc., Wells Fargo Securities, LLC, and Credit Agricole Securities (USA) Inc. acted as joint book-running managers for the offering.