Enbridge postpones $550 million sale of notes due 2021 on reported gas pipeline leak

By Andrea Heisinger

New York, Jan. 11 - Enbridge Inc. postponed its $550 million offering of notes due 2021 (Baa1/A-) on Wednesday after a reported natural gas leak in one of its pipelines, market sources said.

A small natural gas leak was reported in the company's Stingray Pipeline off the coast of Louisiana in the Gulf of Mexico. This happened after the deal was announced and a conference call took place with the underwriters to determine whether to go forward with the sale, an informed source said.

The offering has been postponed indefinitely, he added.

The debt was being talked in the 150 bps area.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the bookrunners.

Proceeds are to be used to repay short-term debt connected with the company's acquisition of a 50% interest in Seawawy Crude Pipeline System, for capital expenditures and for general corporate purposes.

The transporter of crude oil and liquids is based in Calgary, Alta.

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