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April 14, 2016updated 26 Oct 2021 11:49am

Deals this week: TransCanada, Enbridge Income Fund Holdings, Kelt Exploration

North American energy company TransCanada Corporation has announced an increase in the size of its Series 13 preferred shares, offering a price of $19.43 each.

Enbridge US

North American energy company TransCanada Corporation has announced an increase in the size of its Series 13 preferred shares, offering a price of $19.43 each. The issue size has been increased from 12 million shares to 20 million. The gross value of the offer has now increased to C$500m ($388.68m).

TD Securities Inc, BMO Capital Markets Corp and The Bank of Nova Scotia are the underwriters for the offer, which is expected to close on 20 April 2016.

The amount raised through is intended to be used for minimising short-term liabilities and for general corporate purposes.

Enbridge Income Fund Holdings Inc. (EIFH) has announced private placement of $109.93m-worth shares to Enbridge Inc. The deal includes offering 5,056,150 shares at a price of $21.74 per share.

EIFH will use generated funds for the secured incremental capital programmes of two of its subsidiaries Enbridge Pipelines (Athabasca) Inc and Enbridge Pipelines Inc.

In another transaction, EIFH has signed an agreement with a group of underwriters for public offering of 17,699,000 shares, at a price of $21.74 per share.

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“The issue will raise a total of $384.79m.”

The issue will raise a total of $384.79m, which will be used to fund the growth capital schemes of the same subsidiaries.

The underwriters to the issue, Bank of Nova Scotia, BMO Capital Markets Corp. and CIBC Capital Markets, also have a 30-day overallotment option to buy additional shares up to 2,654,850.

Kelt Exploration Ltd has signed an agreement with a team of underwriters for offering debentures, in a bought deal transaction.

Due 31 May 2021, the convertible subordinated unsecured debentures will bear an interest rate of 5.0% per annum.

The gross proceeds of $57.72m raised from the issue will be used to repay existing borrowings from banks and for general corporate and working capital functions.


Image: Enbridge storage terminal in Cushing, Oklahoma, the US. Photo: courtesy of roy.luck.

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