DBRS reviews Spectra Energy

DBRS said it placed the ratings of Spectra Energy Capital, LLC and the ratings of its subsidiaries under review with developing implications.

The action follows the company’s announcement that it entered into a definitive merger agreement under which Enbridge Inc. and Spectra Energy will combine in a stock-for-stock merger transaction, which values Spectra Energy common stock at about C$37 billion ($28 billion), based on the closing price of Enbridge's common shares on Sept. 2.

The combination will create the largest energy infrastructure company in North America and one of the largest globally, based on a pro forma enterprise value of roughly C$165 billion ($127 billion), DBRS said.

The transaction was unanimously approved by the boards of directors of both companies and is expected to close in the first quarter of 2017, subject to shareholder and certain regulatory approvals, and other customary conditions.

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