By Marisa Wong and Cristal Cody
Los Angeles, June 25 – Enbridge Inc. priced $1.5 billion of senior notes in two parts, including one tranche of sustainability-linked notes, according to an FWP filing with the Securities and Exchange Commission and a market source.
Enbridge priced the notes on Thursday following fixed-income investor calls held Wednesday.
The company priced $1 billion of 2.5% sustainability-linked notes due Aug. 1, 2033 at 99.584 to yield 2.54% or a spread over Treasuries of 105 basis points.
Initial price talk was in the Treasuries plus 120 bps to 125 bps area.
The notes include an interest rate step-up from Aug. 1, 2026 of 5 bps and from Aug. 1, 2031 of 50 bps if the issuer has not met a racial and ethnic diversity target.
The company also priced $500 million of 3.4% notes due Aug. 1, 2051 at 99.754 to yield 3.413%, or a spread over Treasuries of 130 bps.
Initial price talk was in the Treasuries plus 155 bps area.
The notes are guaranteed by Spectra Energy Partners, LP and Enbridge Energy Partners, LP.
BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and SMBC Nikko Securities America, Inc. are the joint lead bookrunners. Additional bookrunners are Barclays, Mizuho Securities USA LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC.
Credit Suisse is the sustainability-linked bond structuring adviser.
Proceeds will be used to reduce debt, to fund capital projects and for other general corporate purposes.
The oil and gas distribution and transportation company is based in Calgary, Alta.
| Issuer: | Enbridge Inc.
|
| Guarantors: | Spectra Energy Partners, LP and Enbridge Energy Partners, LP
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| Issue: | Senior notes
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| Amount: | $1.5 billion
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| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and SMBC Nikko Securities America, Inc. (lead); Barclays, Mizuho Securities USA LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | HSBC Securities (USA) Inc., MUFG, Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., SG Americas Securities, LLC, KeyBanc Capital Markets Inc., Loop Capital Markets LLC, AmeriVet Securities Inc. and Roberts & Ryan Investments, Inc.
|
| Pricing date: | June 24
|
| Settlement date: | June 28
|
|
|
| Sustainability-linked notes
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| Amount: | $1 billion
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| Maturity: | Aug. 1, 2033
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| Coupon: | 2.5%, with step-up from Aug. 1, 2026 of 5 bps and from Aug. 1, 2031 of 50 bps if the issuer has not met a racial and ethnic diversity target
|
| Price: | 99.584
|
| Yield: | 2.54%
|
| Spread: | Treasuries plus 105 bps
|
| Call: | Make-whole call at Treasuries plus 17 bps until May 1, 2033, then par call
|
| Initial price talk: | Treasuries plus 120 bps-125 bps area
|
|
|
| Senior notes due 2051
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| Amount: | $500 million
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| Maturity: | Aug. 1, 2051
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| Coupon: | 3.4%
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| Price: | 99.754
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| Yield: | 3.413%
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| Spread: | Treasuries plus 130 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until Feb. 1, 2051, then par call
|
| Initial price talk: | Treasuries plus 155 bps area
|
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