Published on 11/6/2023 in the Prospect News Canadian Bonds Daily and Prospect News Investment Grade Daily.
New Issue: Enbridge sells $3.5 billion of senior notes due 2026, 2028, 2030, 2053
By Wendy Van Sickle
Columbus, Ohio, Nov. 6 – Enbridge Inc. priced $3.5 billion of fixed-rate senior notes in four tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $750 million of 5.9% three-year notes at 99.977 to yield 5.908%, or a spread over Treasuries of 117 basis points.
The company also priced $750 million of 6% five-year notes at 99.892 to yield 6.025%, or a spread over Treasuries of 142 bps.
The company priced $750 million of 6.2% seven-year notes at 99.83 to yield 6.23%, or a spread over Treasuries of 157 bps.
Finally, Enbridge priced $1.25 billion of 6.7% 30-year notes at 99.87 to wild 6.71% or a spread over Treasuries of 187 bps.
The notes are guaranteed by indirect wholly owned subsidiaries Enbridge Energy Partners, LP and Spectra Energy Partners, LP.
Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc., SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC are the bookrunners.
The notes are not being sold in Canada.
Proceeds will be used to reduce the company’s existing debt, to finance future growth opportunities, including acquisitions, to finance capital expenditures or for other general corporate purposes.
Enbridge is an energy infrastructure company based in Calgary, Alta.
| Issuer: | Enbridge Inc.
|
| Guarantors: | Spectra Energy Partners, LP and Enbridge Energy Partners, LP
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| Amount: | $3.5 billion
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| Issue: | Senior notes
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| Bookrunners: | Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc., SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC
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| Co-managers: | BofA Securities, Inc., Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., SG Americas Securities, LLC, Truist Securities, Inc., Academy Securities, Inc., Loop Capital Markets LLC and Samuel A. Ramirez & Co., Inc.
|
| 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: | Nov. 6
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| Settlement date: | Nov. 9
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|
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| Notes due 2026
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| Amount: | $750 million
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| Maturity: | Nov. 15, 2026
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| Coupon: | 5.9%
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| Price: | 99.977
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| Yield: | 5.908%
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| Spread: | Treasuries plus 117 bps
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| Call: | Make-whole call at Treasuries plus 20 bps until Oct. 15, 2026, then a par call
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| Cusip: | 29250NBW4
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|
|
| Notes due 2028
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| Amount: | $750 million
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| Maturity: | Nov. 15, 2028
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| Coupon: | 6%
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| Price: | 99.892
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| Yield: | 6.025%
|
| Spread: | Treasuries plus 142 bps
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| Call: | Make-whole call at Treasuries plus 25 bps until Oct. 15, 2028, then a par call
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| Cusip: | 29250NBX2
|
|
|
| Notes due 2030
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| Amount: | $750 million
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| Maturity: | Nov. 15, 2030
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| Coupon: | 6.2%
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| Price: | 99.83
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| Yield: | 6.23%
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| Spread: | Treasuries plus 157 bps
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| Call: | Make-whole call at Treasuries plus 25 bps until Sept. 15, 2030, then a par call
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| Cusip: | 29250NBY0
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|
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| Notes due 2053
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| Amount: | $1.25 billion
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| Maturity: | Nov. 15, 2053
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| Coupon: | 6.7%
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| Price: | 99.87
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| Yield: | 6.71%
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| Spread: | Treasuries plus 187 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until May 15, 2053, then a par call
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| Cusip: | 29250NBZ7
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