Enbridge Income Fund sells C$125 million in retail offering; Primary supply begins to slow

By Cristal Cody

Prospect News, Dec. 15 - Enbridge Income Fund Holdings Inc. raised C$125 million in a rare Canadian retail bond offering on Thursday, according to a source.

"It went all retail," the source said. "There have not been many of those."

Otherwise the Canadian bond markets saw thin trading over the day.

The Markit CDX Series 17 North American investment-grade index was unchanged at a spread of 130 basis points on Thursday.

"Very, very low volume," a source said. "This week we haven't had enough issuance to be making any impact. If we haven't seen anything by tomorrow morning, then that's it. I think we're done for issuance this year."

Few, if any, deals are expected in the week ahead, though some private offerings are not out of the question, sources note.

"Some people are starting to shut down their books. They don't want to go and buy something right now with Europe being so uncertain," one source said. "If Europe gets a hiccup, then everything's wider tomorrow - it's not conducive to buying a lot of new issues."

Canadian government bonds stayed positive on the longer end, sending yields down 1 basis point to 2 bps. The 10-year note yield fell 2 bps to 1.92%. The 30-year bond yield fell 1 bp to 2.52%.

Economic data was better in Canada and across the border.

Seasonally adjusted home sales rose 0.5% in November to 38,897 units, the Canadian Real Estate Association said Thursday.

The U.S. Department of Labor said weekly first-time unemployment claims fell to a three-year low the week of Dec. 10. Initial claims fell 19,000 to 366,000 from the previous week.

Other reports from the New York Federal Reserve and Philadelphia Federal Reserve also indicated stronger manufacturing activity.

Enbridge sells C$125 million

In the market on Thursday, Enbridge Income Fund Holdings (DBRS: BBB) sold C$125 million of 4% senior medium-term notes due Dec. 20, 2018 (DBRS: BBB) at par in a retail deal, a source said.

CIBC World Markets Inc. was the lead manager.

Proceeds will be used to repay debt, including credit facilities.

Calgary, Alta.-based Enbridge Income Fund is a publicly traded company that focuses on investments in energy infrastructure assets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.