CALGARY, ALBERTA–(Marketwired – Nov. 29, 2017) – Enbridge Income Fund Holdings Inc. (the “Company”) (TSX:ENF) today announced that it has entered into an agreement with a syndicate of underwriters led by Scotiabank, RBC Capital Markets and TD Securities Inc., for the purchase and distribution to the public of 17,986,000 common shares (“Common Shares”) at a price of $27.80 per Common Share (the “Offering Price”) for gross proceeds of $500,010,800 (the “Offering”). The underwriters were also granted an over-allotment option, exercisable within 30 days following closing of the Offering, to acquire up to an additional 2,697,900 Common Shares at the Offering Price. Closing of the Offering is expected on or about December 7, 2017.
Enbridge Inc. (“Enbridge”) (TSX:ENB)(NYSE:ENB) has agreed to concurrently subscribe for 4,468,432 Common Shares (5,138,697 Common Shares assuming the over-allotment option is exercised in full) at the Offering Price on a private placement basis to maintain its 19.9 percent ownership interest in the Company.
The Company intends to use the proceeds from the sale of the Common Shares to subscribe for additional ordinary units (“Fund Units”) of Enbridge Income Fund (the “Fund”) at the Offering Price. The proceeds from the issuance of the Fund Units will be used to repay short-term indebtedness incurred to fund the secured growth capital programs of Enbridge Pipelines (Athabasca) Inc. and Enbridge Pipelines Inc.
Following closing of the Offering, the Company will hold 70.1 percent of the issued and outstanding Fund Units and the Company’s economic interest in the Fund and its investments will increase from 19.2 percent to 21.5 percent, exclusive of any Fund Units acquired in connection with any exercise of the over-allotment option.
The Common Shares will be issued in all of the provinces of Canada by way of a prospectus supplement to the Company’s short form base shelf prospectus dated December 15, 2015. Closing of the Offering is subject to certain conditions, including receipt of the approval of the Toronto Stock Exchange.
The Company also announced today in a separate news release its 2018 guidance and long term financial outlook, including the extension of its 10 percent annual dividend growth guidance by an additional year to 2020.