CALGARY, ALBERTA–(Marketwired – July 6, 2017) – Enbridge Inc. (TSX:ENB)(NYSE:ENB) (Enbridge or the Company) announced today the consideration to be paid in the previously announced cash tender offer (the Offer) by its wholly-owned subsidiary, Spectra Energy Capital, LLC (Spectra Capital) for any and all of Spectra Capital’s outstanding 8.00% senior unsecured notes due 2019 (the Notes). The Offer will expire at 5:00 p.m. New York City time, today, July 6, 2017, unless extended.
The applicable reference yield, repurchase yield and total consideration for the Notes are detailed in the table below:
principal amount of Notes)
|8.0% senior unsecured notes due 2019 (26439RAH9)||US$500,000,000||1.00% UST due 09/30/2019||1.457%||+25 bps||1.707%||$1,137.28|
Upon consummation of the Offer, Spectra Capital will pay total consideration of $1,137.28 for each $1,000 principal amount of Notes tendered and accepted for payment, plus accrued and unpaid interest up to, but not including, July 7, 2017 (the expected settlement date), under the Offer. The total consideration was calculated in the manner described in the Offer to Purchase, dated June 27, 2017 (the Offer to Purchase), by reference to a fixed spread specified in the table above plus the yield to maturity based on the bid-side price of the applicable U.S. Treasury Reference Security specified in the table above at 11:00 a.m. New York City time on July 6, 2017.
To receive such consideration, holders of Notes must validly tender and not validly withdraw their Notes or timely comply with the guaranteed delivery procedures set forth in the Offer to Purchase prior to the expiration of the Offer. Notes tendered may be withdrawn at any time prior to the expiration of the Offer, by following the procedures described in the Offer to Purchase. Holders of Notes are urged to read the Offer to Purchase carefully before making any decision with respect to the Offer.
J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are acting as dealer managers for the Offer. D.F. King & Co., Inc. is acting as the tender and information agent for the Offer.
Questions regarding the Offer may be directed to: J.P. Morgan Securities LLC at 866-834-4666 (toll free) or 212-834-3424 or Citigroup Global Markets Inc. at (800) 558-3745 (toll free) or 212-723-6106. The Offer to Purchase and the notice of guaranteed delivery being provided in connection with the Notes may be accessed at the following link: http://www.dfking.com/spectra or obtained from D.F. King & Co., Inc., free of charge, by calling toll-free at (877) 783-5524 (bankers and brokers can call collect at 212-269-5550).
The obligation of Spectra Capital to accept for purchase and to pay the Total Consideration and the accrued and unpaid interest on Notes purchased pursuant to the Offer is not subject to any minimum tender condition, but is subject to satisfaction or waiver of certain other conditions described in the Offer to Purchase. These conditions include Enbridge’s having closed, on terms and conditions satisfactory to Enbridge, one or more offerings of senior unsecured notes in an aggregate principal amount of not less than US$1,100,000,000. Enbridge anticipates closing such an offering on July 7, 2017. Enbridge’s current intention is to not issue any further public securities from Spectra Capital.