Enbridge Prices Public Offering of Series 2017-A Notes Due 2077 for USD1 Billion

Published: Jul 10 2017
Deal Summary

Enbridge Inc., a power generation, distribution and transmission company, has priced the public offering fixed-to-floating subordinated notes series 2017-A due July 15, 2077, for gross proceeds of USD1,000 million. The notes will be issued at 100% of the principal amount.

From the issue date of the notes to, but excluding, July 15, 2027, interest will be paid at a fixed rate equal to 5.5% per year, semi-annually in arrears on January 15 and July 15 of each year, with the first payment at such rate being on January 15, 2018. From July 15, 2027, and on every October 15, January 15, April 15 and July 15 of each year thereafter until July 15, 2077 (interest reset date), the interest rate on the notes will be reset as: (i) starting on July 15, 2027, on every interest reset date until July 15, 2047, the interest rate on the notes will be reset at an interest rate per annum equal to the three month LIBOR plus 3.418%, payable in arrears, with the first payment at such rate being on October 15, 2027 and, (ii) starting on July 15, 2047, on every interest reset date, until July 15, 2077, the interest rate on the notes will be reset on each interest reset date at an interest rate per annum equal to the three month LIBOR plus 4.168%, payable in arrears, with the first payment at such rate being on October 15, 2047.

On or after July 15, 2027, the company may, at its option, redeem the notes, in whole at any time or in part from time to time, on any interest payment date at a redemption price per USD1,000 principal amount of the notes equal to 100% of the principal amount thereof, together with accrued and unpaid interest to, but excluding, the date fixed for redemption.

Deutsche Bank Securities Inc., Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, and HSBC Securities (USA) Inc. acted as joint book running managers to the company, while McCarthy Tetrault LLP is acting as legal advisor in respect to the Canadian law and Sullivan & Cromwell LLP is acting as legal advisor in respect to the New York law for the offering.

The company intends to use the proceeds to partially fund capital projects, to reduce existing indebtedness and for its other general corporate purposes and its affiliates.

Deal History:

Filing: On August 19, 2016, Enbridge filed short form base shelf prospectus with the US Securities and Exchange Commission for public offering of debt securities, common shares and cumulative redeemable preference shares from time to time, for aggregate gross proceeds of USD7,000 million.

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