By Cristal Cody
Prospect News, Dec. 11 - Enbridge Income Fund Holdings Inc. (Baa2/DBRS: BBB) priced C$500 million of medium-term notes in two tranches on Tuesday, an informed source said.
The fund sold C$225 million of 2.92% series 9 notes due Dec. 14, 2017 at 99.982 to yield 2.924%, or a spread of 160 basis points over the interpolated Government of Canada bond curve.
The second tranche of C$275 million of 3.94% series 10 notes due Jan. 13, 2023 priced at 99.981 to yield 3.942%, or a spread of 215 bps over the bond curve.
BMO Capital Markets Corp., CIBC World Markets Inc., HSBC Capital (Canada) Inc. and National Bank Financial Inc. were the lead managers. Co-managers were RBC Capital Markets, Scotia Capital Inc. and TD Securities Inc.
Proceeds will be used to repay debt and for general corporate purposes.
Calgary, Alta.-based Enbridge Income Fund focuses on investments in energy infrastructure assets. The fund brought an offering of a C$200 million of two-year floating-rate senior medium-term notes on Nov. 26 at par to yield 100 bps over three-month CDOR.
| Issuer: | Enbridge Income Fund Holdings Inc.
|
| Amount: | C$500 million
|
| Securities: | Medium-term notes
|
| Bookrunners: | BMO Capital Markets Corp., CIBC World Markets Inc., HSBC Capital (Canada) Inc. and National Bank Financial Inc.
|
| Co-managers: | RBC Capital Markets, Scotia Capital Inc. and TD Securities Inc.
|
| Pricing date: | Dec. 11
|
| Settlement date: | Dec. 14
|
| Ratings: Moody's: Baa2
|
| DBRS: BBB
|
| Distribution: | Canada
|
|
|
| Series 9
|
| Amount: | C$225 million
|
| Maturity: | Dec. 14, 2017
|
| Coupon: | 2.92%
|
| Price: | 99.982
|
| Yield: | 2.924%
|
| Spread: | 160 bps over interpolated Government of Canada bond curve
|
| Call feature: | Canada bond yield plus 40 bps
|
|
|
| Series 10
|
| Amount: | C$275 million
|
| Maturity: | Jan. 13, 2023
|
| Coupon: | 3.94%
|
| Price: | 99.981
|
| Yield: | 3.942%
|
| Spread: | 215 bps over interpolated Government of Canada bond curve
|
| Call feature: | Canada bond yield plus 53.5 bps
|
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