Published on 3/6/2023 in the Prospect News Agency DailyProspect News Canadian Bonds Daily, Prospect News Green Finance Daily and Prospect News Investment Grade Daily.
New Issue: Enbridge sells $3 billion of senior notes in two parts, one sustainability-linked
By Wendy Van Sickle
Columbus, Ohio, March 6 – Enbridge Inc. sold $3 billion of senior notes in two parts – one sustainability-linked – on Monday, according to an FWP filing with the Securities and Exchange Commission.
The notes are guaranteed by Enbridge Energy Partners, LP and Spectra Energy Partners, LP.
The company priced $700 million of 5.969% senior notes due 2026 at par at a spread of Treasuries plus 135 basis points.
It also priced $2.3 billion of 5.7% sustainability-linked senior notes due 2033 at 99.872 to yield 5.717%, or a spread of 173 bps over Treasuries. This tranche is subject to a step-up of 50 bps to 6.2% if the company fails to meet a GHG intensity performance target and receive external verification by Sept. 8, 2031.
J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, SMBC Nikko Securities America, Inc. and Truist Securities, Inc. are the bookrunners.
Proceeds will be used to reduce debt, to partially 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.
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| Guarantors: | Enbridge Energy Partners, LP and Spectra Energy Partners, LP
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| Amount: | $3 billion
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| Bookrunners: | J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, SMBC Nikko Securities America, Inc. and Truist Securities, Inc.
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| Co-managers: | Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., MUFG Securities Americas Inc., Wells Fargo Securities, LLC, Credit Agricole Securities (USA) Inc., SG Americas Securities, LLC, Loop Capital Markets LLC, Academy Securities, Inc., AmeriVet Securities Inc., C.L. King & Associates, Inc. and Roberts & Ryan Investments, Inc.
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| Trustee: | Deutsche Bank Trust Co. Americas
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| Counsel to issuer: | McCarthy Tetrault LLP and Sullivan & Cromwell LLP
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| Counsel to underwriters: | Baker Botts LLP and Osler, Hoskin & Harcourt LLP
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| Pricing date: | March 6
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| Settlement date: | March 8
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|
|
| Three-year notes
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| Amount: | $700 million
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| Issue: | Senior notes
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| Maturity: | March 8, 2026
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| Coupon: | 5.969%
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| Price: | Par
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| Yield: | 5.969%
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| Spread: | Treasuries plus 135 bps
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| Call: | Make-whole call at Treasuries plus 25 bps until March 8, 2024, then a par call
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| Cusip: | 29250NBQ7
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|
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| Sustainability-linked notes
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| Amount: | $2.3 billion
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| Issuee: | Sustainability-linked senior notes
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| Maturity: | March 8, 2033
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| Coupon: | 5.7%, subject to step-up of 50 bps to 6.2% if company fails to meet a GHG intensity performance target and receive external verification by Sept. 8, 2031
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| Price: | 99.872
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| Yield: | 5.717%
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| Spread: | Treasuries plus 173 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until Dec. 8, 2032, then a par call
|
| Cusip: | 29250NBR5
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