Enbridge to Transfer 1.164 Billion of Assets to Enbridge Income Fund
CALGARY, ALBERTA, Oct 25, 2012 (Menafn - MARKETWIRE via COMTEX) --Enbridge Inc. ENB announced today that it hasentered into an agreement with Enbridge Income Fund ("the Fund") totransfer a group of crude oil storage, wind power and solar powerassets at a price of 1.164 billion to the Fund. The transfer issubject to approval by the public shareholders of Enbridge IncomeFund Holdings Inc. ("ENF"), at a meeting to be heldDecember 7, 2012, and to the closing of a 222 million subscriptionreceipt public offering by ENF.
Enbridge will receive cash proceeds from the transaction of 222million and an additional 582 million in the form of term debt ofthe Fund, which the Fund is expected to repay to Enbridge throughissuance of public term debt. Enbridge will also subscribe for 305million of additional Enbridge Commercial Trust ("ECT") preferredunits and 55 million in common shares of ENF on a private placementbasis at the same price per security as the subscription receiptoffering, maintaining its interest in ENF at 19.9%. As a result ofthe transfer, Enbridge's economic interest in the Fund as a whole,represented by its direct ownership of Fund trust units and ECTpreferred units, as well as its 19.9% interest in ENF, will bereduced from 69.2% to 67.8%. The terms of the transfer werenegotiated between Enbridge and a committee of independent trusteesof Enbridge Commercial Trust on behalf of the Fund.
"We are pleased to be moving forward with this second billion dollarplus drop down to the Enbridge Income Fund, consistent with thesponsored vehicle drop down strategy outlined at our recent EnbridgeDay investor conference," said J. Richard Bird, Executive VicePresident, Chief Financial Officer and Corporate Development,Enbridge Inc. "The drop down will enhance the distributable cash flowof the Fund and ENF, benefiting both the public investors in ENF, aswell as Enbridge through our 19.9% interest in ENF. The transactionwill provide 800 million of net funding for our large growth capitalinvestment program, including further front end bolstering of ourequity base. This funding strategy is modestly accretive toEnbridge's earnings per share in the near term compared to issuingEnbridge common shares, and more accretive over the medium term."
About Enbridge Inc.
Enbridge Inc. is a North American leader in delivering energy and oneof the Global 100 Most Sustainable Corporations. As a transporter ofenergy, Enbridge operates, in Canada and the U.S., the world'slongest crude oil and liquids transportation system. The Company alsohas a significant and growing involvement in natural gas gathering,transmission and midstream businesses, and an increasing involvementin power transmission. As a distributor of energy, Enbridge owns andoperates Canada's largest natural gas distribution company, andprovides distribution services in Ontario, Quebec, New Brunswick andNew York State. As a generator of energy, Enbridge has interests inclose to 1,000 megawatts of renewable and alternative energygenerating capacity and is expanding its interests in wind and solarenergy, geothermal and hybrid fuel cells. Enbridge employs more than10,000 people, primarily in Canada and the U.S. and is ranked as oneof Canada's Greenest Employers and one of Canada's Top 100 Employersfor 2013. Enbridge is included on the 2012/2013 Dow JonesSustainability World Index and the Dow Jones Sustainability NorthAmerica Index and is also a constituent of the 2012/2013 FTSE4GoodIndex Series. Enbridge is also featured on the 2012 Carbon DisclosureLeadership Index. Our U.S. affiliate, Enbridge Energy Partners, isranked as one of the 100 Most Trustworthy Companies in America.Enbridge's common shares trade on the Toronto and New York stockexchanges under the symbol ENB. For more information, visitwww.enbridge.com.
Certain information provided in this news release constitutesforward-looking statements. The words "anticipate", "expect","project", "estimate", "forecast" and similar expressions areintended to identify such forward-looking statements. AlthoughEnbridge believes that these statements are based on information andassumptions which are current, reasonable and complete, thesestatements are necessarily subject to a variety of risks anduncertainties pertaining to operating performance, regulatoryparameters, weather, economic conditions and commodity prices. Youcan find a discussion of those risks and uncertainties in ourCanadian securities filings and American SEC filings. While Enbridgemakes these forward-looking statements in good faith, should one ormore of these risks or uncertainties materialize, or shouldunderlying assumptions prove incorrect, actual results may varysignificantly from those expected. Except as may be required byapplicable securities laws, Enbridge assumes no obligation topublicly update or revise any forward-looking statements made hereinor otherwise, whether as a result of new information, future eventsor otherwise. visit www.enbridge.com.
Contacts:
Enbridge Inc.
Jennifer Varey
Media
(403) 508-6563 or Toll Free: (888) 992-0997
jennifer.varey@enbridge.com
Enbridge Inc.
Jody Balko
Investment Community
(403) 231-5720
jody.balko@enbridge.com
www.enbridge.com
SOURCE: Enbridge Inc.
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