Enbridge Income closes $575-million public offering
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