Canadian Banks Proactively Investing in Canadian Business Enbridge to raise $2-billion, shares priced at a 6% discount
Enbridge Inc. (ENB.TO 0.00%) has entered into an agreement with a group of Canadian and U.S. underwriters for a $2 billion share issue – a sum that will be used to help fund planned capital projects to the end of 2017.
After North American markets closed Wednesday, the pipeline and energy giant announced it has entered into a bought deal agreement with RBC, Credit Suisse, BMO, CIBC, Scotiabank, and TD to issue 49.14 million shares at a price of $40.70 per share. Underwriters will re-sell the shares to investors.
The deal is the largest-ever equity offering for Enbridge.
The share price of the bought deal is a discount of more than 5 per cent of the Toronto Stock Exchange close of $43.16 for Enbridge shares Wednesday.
“Proceeds will be used to pay down short term indebtedness pending investment in capital projects,” Enbridge said in a news release late Wednesday.
The company is planning a capital program of about $18 billion from now to 2019, including the $7.5 billion Line 3 pipeline replacement in Canada and the U.S., and the proposed Sandpiper project south of the border.