Spectra Energy starts tender offers to buy $1.1 billion of notes

New York, June 27 – Enbridge Inc. said that its Spectra Energy Capital, LLC subsidiary has begun two tender offers, one to purchase any and all of its $500 million of 8% senior notes due 2019, the other to buy up to $600 million principal amount of six series of senior notes.

Pricing for the any and all offer will be set using a spread of 25 basis points over the 1% Treasury due Sept. 30, 2019, according to a news release.

The any and all offer ends at 5 p.m. ET on July 6.

Pricing will be set at 11 a.m. ET on July 6.

The securities included in the maximum tender offer and the pricing terms are as follows, with the notes listed in descending priority of acceptance:

• $250 million of 7.5% senior notes due 2038 at a purchase price to be set using a spread of 215 bps over the 3% Treasury due Feb. 15, 2047;

• $240 million of 6.75% senior notes due 2032 at a purchase price to be set using a spread of 175 bps over the 3% Treasury due Feb. 15, 2047;

• $150 million of 6.75% senior notes due 2018 at a purchase price to be set using a spread of 35 bps over the 1.25% Treasury due May 31, 2019;

• $500 million of 6.2% senior notes due 2018 at a purchase price to be set using a spread of 40 bps over the 0.75% Treasury due April 15, 2018;

• $300 million of 5.65% senior notes due 2020 at a purchase price to be set using a spread of 65 bps over the 1.5% Treasury due June 15, 2020; and

• $650 million of 3.3% senior notes due 2023 at a purchase price to be set using a spread of 140 bps over the 1.75% Treasury due May 31, 2022.

Prices calculated using the spreads above will include an early tender payment of $30 per $1,000 principal amount that will only be paid to those who tender by 5 p.m. ET on July 11.

Those who tender subsequently will not receive the early tender payment.

The maximum tender ends at 12 a.m. ET on July 26.

All notes tender ahead of the early deadline will be accepted before those tendered afterwards, regardless of priority level.

Pricing will be set at 11 a.m. ET on July 12.

For both offers, Spectra will also pay accrued interest up to but excluding the settlement date, which is expected to be July 7 for the any and all offer, July 13 for early tenders in the maximum offer and July 26 for remaining tenders in the maximum offer.

Completion of the tenders is subject to conditions including the sale at least $1.1 billion of new senior notes by Enbridge.

Enbridge said it does not intend to issue any further public securities from Spectra Capital.

J.P. Morgan Securities LLC (866 834-4666 or 212 834-3424) and Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) are dealer managers. D.F. King & Co., Inc. (http://www.dfking.com/spectra, 877 783-5524 or 212 269-5550) is the information agent and depositary.

Enbridge is a Calgary, Alta. energy infrastructure company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.