Published on 4/2/2024 in the Prospect News Canadian Bonds Daily and Prospect News Investment Grade Daily.
New Issue: Enbridge sells $3.5 billion of senior notes due 2027, 2029, 2034, 2054
By Wendy Van Sickle
Columbus, Ohio, April 2 – Enbridge Inc. priced $3.5 billion of fixed-rate senior notes in four tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $750 million of 5.25% three-year notes at 99.942 to yield 5.271%, or a spread over Treasuries of 75 basis points.
The company also priced $750 million of 5.3% five-year notes at 99.978 to yield 5.305%, or a spread over Treasuries of 95 bps.
The company priced $1.2 billion of 5.625% 10-year notes at 99.849 to yield 5.645%, or a spread over Treasuries of 128 bps.
Finally, Enbridge priced $800 million of 5.95% 30-year notes at 99.889 to yield 5.958% or a spread over Treasuries of 145 bps.
The notes are guaranteed by indirect wholly owned subsidiaries Enbridge Energy Partners, LP and Spectra Energy Partners, LP.
BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., SMBC Nikko Securities America, Inc., Credit Agricole Securities (USA) 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.
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| 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: | BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., SMBC Nikko Securities America, Inc., Credit Agricole Securities (USA) Inc. and Wells Fargo Securities, LLC
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| Co-managers: | Barclays, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc., SG Americas Securities, LLC, Truist Securities, Inc., Morgan Stanley & Co. LLC, Academy Securities, Inc., Loop Capital Markets LLC, Samuel A. Ramirez & Co., Inc., AmeriVet Securities, Inc., C.L. King & Associates, Inc. and Roberts & Ryan, 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: | April 2
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| Settlement date: | April 9
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| Notes due 2027
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| Amount: | $750 million
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| Maturity: | April 5, 2027
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| Coupon: | 5.25%
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| Price: | 99.942
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| Yield: | 5.271%
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| Spread: | Treasuries plus 75 bps
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| Call: | Make-whole call at Treasuries plus 15 bps until March 5, 2027, then a par call
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| Cusip: | 29250NCA1
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|
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| Notes due 2029
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| Amount: | $750 million
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| Maturity: | April 5, 2029
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| Coupon: | 5.3%
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| Price: | 99.978
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| Yield: | 5.305%
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| Spread: | Treasuries plus 95 bps
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| Call: | Make-whole call at Treasuries plus 15 bps until March 5, 2029, then a par call
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| Cusip: | 29250NCB9
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|
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| Notes due 2034
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| Amount: | $1.2 billion
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| Maturity: | April 5, 2034
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| Coupon: | 5.625%
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| Price: | 99.849
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| Yield: | 5.645%
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| Spread: | Treasuries plus 128 bps
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| Call: | Make-whole call at Treasuries plus 20 bps until Jan. 5, 2034, then a par call
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| Cusip: | 29250NCC7
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| Notes due 2054
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| Amount: | $800 million
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| Maturity: | April 5, 2054
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| Coupon: | 5.95%
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| Price: | 99.889
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| Yield: | 5.958%
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| Spread: | Treasuries plus 145 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps until Oct. 5, 2053, then a par call
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| Cusip: | 29250NCD5
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