Enbridge Inc. launched an offering of $700 million of its floating rate senior notes due 2020.
Interest on the notes will be paid every Jan. 10, April 10, July 10 and Oct 10 of each year starting Jan. 10, 2018. The notes bear an interest rate equal to the 3 month London Interbank Offered Rate plus 40 basis points per year. The notes may not be redeemed prior to maturity unless in whole, at any time, if certain changes affecting Canadian withholding taxes occur, according an Oct. 4 prospectus supplement.
The company intends to use the net proceeds from the offering, expected to amount to about $697.5 million, to partially fund capital projects, reduce indebtedness and for other general purposes.
BofA Merrill Lynch is acting sole book-running manager for the offering.