En­bridge In­come closes $575-mil­lion pub­lic of­fer­ing

Stockwatch Daily - - ENERGY - Mr. Adam McKnight re­ports

EN­BRIDGE IN­COME Fund Hold­ings Inc. has closed its pre­vi­ously an­nounced pub­lic of­fer­ing of com­mon shares of the com­pany. The com­pany, through a syn­di­cate of un­der­writ­ers led by Sco­tia­bank, RBC Cap­i­tal Mar­kets and TD Se­cu­ri­ties Inc., is­sued 20,683,900 com­mon shares, in­clu­sive of 2,697,900 com­mon shares is­sued on full ex­er­cise of the un­der­writ­ers’ over­al­lot­ment op­tion, at a price of $27.80 for gross pro­ceeds of $575,012,420.

Con­cur­rent with clos­ing of the of­fer­ing, En­bridge Inc. sub­scribed for 5,138,697 com­mon shares on a pri­vate-place­ment ba­sis at a price of $27.80 for gross pro­ceeds of $142,855,777 to main­tain its 19.9-per-cent own­er­ship in­ter­est in the com­pany.

Pro­ceeds from the of­fer­ing and the con­cur­rent pri­vate place­ment will be used to sub­scribe for 25,822,597 or­di­nary units of En­bridge In­come Fund at $27.80 per unit for gross pro­ceeds to the fund of $717,868,197. The pro­ceeds from the is­suance of the fund units will be used to re­pay short-term in­debt­ed­ness and fi­nance growth projects as­so­ci­ated with the fund’s Cana­dian liq­uids pipe­line as­sets.

The com­pany now holds 70.5 per cent of the is­sued and out­stand­ing fund units, rep­re­sent­ing a 21.8-per-cent eco­nomic in­ter­est in the fund and its in­vest­ments. En­bridge owns the re­main­ing fund units and eco­nomic in­ter­est in the fund group.

About En­bridge In­come Fund Hold­ings Inc.

En­bridge In­come Fund Hold­ings, through its in­vest­ment in the fund, in­di­rectly holds high-qual­ity, low-risk en­ergy in­fra­struc­ture as­sets. The fund’s as­sets con­sist of a port­fo­lio of Cana­dian liq­uids trans­porta­tion and stor­age busi­nesses, in­clud­ing the Cana­dian main­line, the re­gional oil sands sys­tem, the Cana­dian seg­ment of the South­ern Lights pipe­line, Class A units en­ti­tling the holder to re­ceive de­fined cash flows from the United States seg­ment of the South­ern Lights pipe­line, a 50-per-cent in­ter­est in the Al­liance pipe­line, which trans­ports nat­u­ral gas from Canada to the United States, and in­ter­ests in more than 1,400 megawatts of re­new­able and al­ter­na­tive power gen­er­a­tion as­sets.

We seek Safe Har­bor.

John Richard A Bird, Charles Wayne Fischer, Brian Ernst Frank, Ernest F H Roberts, Bruce G Water­man

(ENF) Shares: 147,499,414

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