8-K

ENBRIDGE INC 8-K Report (Mar 1, 2016)

Filed March 1, 2016For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) filed a Form 6-K on March 1, 2016, reporting a significant equity offering. On February 24, 2016, the company announced an agreement to issue approximately CDN$2 billion of common shares on a bought deal basis. This offering, consisting of 49.14 million shares at CDN$40.70 each, is intended to fund capital projects by paying down short-term indebtedness. The proceeds from this offering are anticipated to cover Enbridge's equity funding needs for its commercially secured growth program through the end of 2017. The offering was made through a group of Canadian and U.S. financial institutions and is expected to close around March 1, 2016. An over-allotment option for up to an additional 7.371 million shares also exists.

Key Highlights

  • 1Enbridge Inc. announced a CDN$2 billion common share offering via a bought deal.
  • 2The offering involves the issuance of 49.14 million common shares at CDN$40.70 per share.
  • 3Proceeds will be used to pay down short-term debt and fund capital projects.
  • 4The equity raised is expected to satisfy funding needs for the secured growth program through year-end 2017.
  • 5The offering was underwritten by a syndicate of Canadian and U.S. financial institutions.
  • 6An over-allotment option for an additional 7.371 million shares is available.
  • 7The filing includes a press release dated February 24, 2016, detailing the offering.

Frequently Asked Questions

The primary purpose of the offering is to raise approximately CDN$2 billion in equity to pay down short-term indebtedness and to fund Enbridge's capital projects. This issuance is intended to cover the company's equity funding requirements for its commercially secured growth program through the end of 2017.

Enbridge is issuing 49.14 million common shares from treasury at a price of CDN$40.70 per share. There is also an option for the underwriters to purchase up to an additional 7.371 million common shares to cover over-allotments.

The closing of the offering was expected to occur on or about March 1, 2016.

The offering is being made through a group of Canadian and United States financial institutions, including RBC Capital Markets, Credit Suisse, BMO Capital Markets, CIBC World Markets, Scotiabank, and TD Securities, acting as co-lead underwriters.