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Enbridge unit gets tenders for $106.95 million of 6.75%, 7.5% notes
By Susanna Moon
Chicago, March 7 – Enbridge Inc. announced the results of the tender by wholly owned subsidiary Spectra Energy Capital, LLC for its $166,975,000 of 6.75% senior notes due 2032 and $112,509,000 of 7.5% senior notes due 2038.
Holders had tendered $64,121,000 principal amount of the 2032 notes and $42,829,000 principal amount of the 2038 notes, according to a company press release.
The tally includes $96,000 of the 2032 notes tendered under guaranteed delivery procedures.
The total purchase price for each $1,000 principal amount is $1,244.95 for the 6.75% notes and $1,344.82 for the 7.5% notes.
Pricing was set at 11 a.m. ET on March 6 using the yield to maturity of the bid-side price of the 2.75% U.S. Treasury note due Nov. 15, 2047 plus a spread of 125 basis points for the 6.75% notes and 170 bps for the 7.5% notes.
For the 6.75% notes, the reference yield was set at 3.132% and the repurchase yield at 4.382%. For the 7.5% notes, the reference yield was set at 3.132% and the repurchase yield at 4.832%.
The tender offer ended at 5 p.m. ET on March 6. The offer began Feb. 28.
Spectra will also pay accrued interest up to but excluding the settlement date of March 9.
J.P. Morgan Securities LLC (866 834-4666 or 212 834-3424) is the dealer manager. D.F. King & Co., Inc. (877 783-5524, 212 269-5550 or dfking.com/spectra) is the information agent and the depositary.
On Feb. 22, the issuer called $163 million of outstanding 5.65% senior notes due 2020 and $498 million of 3.3% senior notes due 2023, with the redemptions set for March 27, according to the company notice.
Spectra has two other remaining series of notes due April 2018 and July 2018 and plans to repay the $390 million principal outstanding at maturity.
Enbridge said it plans to refrain from issuing any more public securities through Spectra Capital.
Enbridge is a Calgary, Alta.-based oil and gas distribution and transportation company.
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