Enbridge Energy Partners Sells 5.9 Million Class C Units In Private Placement
Enbridge Energy Partners, L.P. (NYSE:EEP) (“Enbridge Partners”) announced that today it issued and sold approximately 5.9 million Class C Units in a private placement at a purchase price of approximately $53.11 per unit. CDP Infrastructures Fund G.P., a subsidiary of Caisse de depot et placement du Quebec, purchased approximately 4.7 million of the units. Tortoise Energy Infrastructure Corporation (NYSE:TYG) and Tortoise Energy Capital Corporation (NYSE:TYY), investment companies managed by Tortoise Capital Advisors, L.L.C., together purchased approximately 1.2 million of the units.
In addition, Enbridge Energy Company, Inc. will contribute approximately $6.4 million to Enbridge Partners to maintain its two percent general partner interest. Proceeds to Enbridge Partners from the total placement, net of expenses associated with the sale, are approximately $321 million. Enbridge Partners intends to use the net proceeds from the sale to finance a portion of its capital expansion program, including the East Texas and Southern Access expansion projects.
Until August 15, 2009, the holders of Class C Units will receive quarterly distributions of additional Class C Units with a value equivalent to the quarterly cash distributions paid to the holders of Class A Common Units. The value of the additional Class C Units will be based on the market value of the Class A Common Units.
After August 15, 2009, the holders of Class C Units will receive quarterly cash distributions equal to those paid to the holders of Class A Common Units. After August 15, 2009, holders of the Class C Units may elect to convert their units into Class A Common Units on a one-for-one basis. The conversion would require approval of the holders of outstanding units in accordance with the then-existing requirements of the principal national securities exchange on which the Class A Common Units are listed.
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