Enbridge Pipelines Issues 30-Year Paper

I can’t find any definitive information on this issue but DBRS reports:

DBRS has today assigned a rating of A (high) with a Stable trend to Enbridge Pipelines Inc.’s $350 million 4.45% unsecured medium-term notes (Notes) issue maturing on April 6, 2020, and $300 million 5.33% Notes maturing on April 6, 2040.
The Notes will rank equally with all of Enbridge Pipelines Inc.’s existing senior unsecured indebtedness. Net proceeds from the issue will be used to repay short-term indebtedness and for other general corporate purposes.

Thirty year Enbridge Pipelines paper at 5.33%, eh? Given continuing carnage in the preferred share market, it’s nice to see how the other half lives!

Enbridge Pipelines is 100% owned by Enbridge. It issued $200-million in 30-year notes at 5.35 in a prospectus supplement dated 2009-11-23. That issue had a Canada Call at +33bp, but no unusual features.

ENB.PR.A closed today at 24.05-10 to yield 5.78% dividend at the bid, equivalent to 8.09% interest at the standard equivalency factor of 1.4x; a spread (assuming credit equivalency) of +276bp. ENB.PR.A was last mentioned on PrefBlog in the post TXPR Rebalancing Effect on Market (it was removed from TXPR in January). ENB.PR.A is tracked by HIMIPref™ and is a member of the PerpetualDiscounts subindex.

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