Units convert into about 43.2 million common units, may be redeemed
By Devika Patel
Knoxville, Tenn., May 8 - Enbridge Energy Partners, LP said it will raise $1.2 billion in a private placement of convertible preferred units with Enbridge Inc.
The company will sell the units at $25.00 apiece. The purchase price is a 13.44% discount to the May 7 closing share price of $28.88.
The units convert to about 43.2 million common units after June 1, 2016. The units will pay a fixed yield of 7.5% every five years. The units may be redeemed after five years.
Settlement is expected Wednesday.
Proceeds will be used to repay commercial paper, for the company's capital expansion program relating to its core liquids and natural gas systems and general partnership purposes.
The crude oil and petroleum company is based in Houston.
| Issuer: | Enbridge Energy Partners, LP
|
| Issue: | Convertible preferred units
|
| Amount: | $1.2 billion
|
| Price: | $25.00
|
| Distribution yield: | 7.5% every five years
|
| Conversion ratio: | Into about 43.2 million common units
|
| Call: | Yes
|
| Warrants: | No
|
| Investor: | Enbridge Inc.
|
| Pricing date: | May 8
|
| Settlement date: | May 8
|
| Stock symbol: | NYSE:EEP
|
| Stock price: | $28.88 at close May 7
|
| Market capitalization: | $9.19 billion
|
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