The Globe and Mail reports in its Friday, Oct. 2, edition that Enbridge Energy Partners LP is
planning its first bond sale since
2011 as the transporter of crude
oil and natural gas seeks to repay
short-term debt and finance capital
expansion in a market that has
been wary of petroleum-related
borrowers.
A Bloomberg dispatch to The Globe reports that the offering will be in as many
as three parts, the Houston-based
business said in a regulatory
filing Thursday. The longest
portion will be a 30-year bond
that may yield as much as 4.5
percentage points more than
comparable United States Treasuries,
says an unnamed source.
Bloomberg says the sale is being seen as a test
for energy companies, which
have been virtually frozen out of
the debt market by a global
decline in oil and gas prices that
began in June, 2014.
Enbridge shares shed eight cents to close in Toronto Thursday at $49.47. The Globe's Larry MacDonald reported on Sept. 16 that most analysts following Enbridge rate it "buy." Mr. MacDonald said the bullish case for Enbridge is not without its persuasive aspects. Enbridge shares could then be had for $50.45.
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