HOUSTON, April 4, 2016 /CNW/ -- Spectra Energy Corp (NYSE:
SE) and Spectra Energy Partners, LP (NYSE: SEP) announced today
their agreement for Spectra Energy Corp to acquire approximately
9.1 million common units representing limited partner interests in
Spectra Energy Partners at a price of $45.96 per unit in a private placement. In
addition, Spectra Energy Corp will purchase up to an additional 1.4
million common units in the event that additional shares of its
common stock are issued pursuant to the 25-day option granted to
the underwriter in Spectra Energy Corp's public offering of common
stock. Spectra Energy Corp is the parent company of the general
partner of Spectra Energy Partners.
When the initial private placement is complete, Spectra Energy
Partners will have approximately 296 million common units
outstanding. The Spectra Energy Corp ownership interest in Spectra
Energy Partners after this transaction will be 78 percent.
This transaction is being financed with the Spectra Energy
common equity issuance announced earlier today.
"The transactions we announced today demonstrate the flexibility
and economic benefits associated with having strong and multiple
financing options across the Spectra Energy group of companies. The
proceeds from these transactions, and the pending sale of our
Empress asset, enable us to further execute on our 2016-2018
capital expansion plan. In addition, these transactions allow us to
continue to deliver on our DCF, dividend and distribution
expectations as well as our DCF coverage levels at Spectra Energy
and Spectra Energy Partners as we outlined to investors earlier
this year," said Greg Ebel, chairman
and CEO of Spectra Energy and Spectra Energy Partners. "Given the
results already achieved from our financing activities this year
and our current capital plan, our expectation is that we will not
need additional Spectra Energy equity in 2016. Spectra Energy
Partners' ATM program is expected to continue to operate throughout
2016 and provide substantially all of SEP's remaining equity needs
for this calendar year."
The securities to be issued in the private placement have not
been registered under the Securities Act of 1933, as amended (the
"Securities Act"), or any state securities laws and may not be
offered or sold in the United
States absent registration or an applicable exemption from
the registration requirements of the Securities Act and applicable
state laws.
This news release is neither an offer to sell nor a solicitation
of an offer to buy any of these securities and shall not constitute
an offer, solicitation or sale in any jurisdiction in which such
offer, solicitation or sale is unlawful.
Forward-Looking Statements
This release includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements are based on our beliefs and
assumptions. These forward-looking statements are identified by
terms and phrases such as: anticipate, believe, intend, estimate,
expect, continue, should, could, may, plan, project, predict, will,
potential, forecast, and similar expressions. Forward-looking
statements involve risks and uncertainties that may cause actual
results to be materially different from the results
predicted. Factors that could cause actual results to differ
materially from those indicated in any forward-looking statement
include, but are not limited to: state, federal and foreign
legislative and regulatory initiatives that affect cost and
investment recovery, have an effect on rate structure, and affect
the speed at and degree to which competition enters the natural gas
and oil industries; outcomes of litigation and regulatory
investigations, proceedings or inquiries; weather and other natural
phenomena, including the economic, operational and other effects of
hurricanes and storms; the timing and extent of changes in
commodity prices, interest rates and foreign currency exchange
rates; general economic conditions, including the risk of a
prolonged economic slowdown or decline, or the risk of delay in a
recovery, which can affect the long-term demand for natural gas and
oil and related services; potential effects arising from terrorist
attacks and any consequential or other hostilities; changes in
environmental, safety and other laws and regulations; the
development of alternative energy resources; results and costs of
financing efforts, including the ability to obtain financing on
favorable terms, which can be affected by various factors,
including credit ratings and general market and economic
conditions; increases in the cost of goods and services required to
complete capital projects; declines in the market prices of equity
and debt securities and resulting funding requirements for defined
benefit pension plans; growth in opportunities, including the
timing and success of efforts to develop U.S. and Canadian
pipeline, storage, gathering, processing and other related
infrastructure projects and the effects of competition; the
performance of natural gas and oil transmission and storage,
distribution, and gathering and processing facilities; the extent
of success in connecting natural gas and oil supplies to gathering,
processing and transmission systems and in connecting to expanding
gas and oil markets; the effects of accounting pronouncements
issued periodically by accounting standard-setting bodies;
conditions of the capital markets during the periods covered by
forward-looking statements; and the ability to successfully
complete merger, acquisition or divestiture plans; regulatory or
other limitations imposed as a result of a merger, acquisition or
divestiture; and the success of the business following a merger,
acquisition or divestiture. These factors, as well as
additional factors that could affect our forward-looking
statements, are described in our filings that we make with the SEC,
which are available via the SEC's website at www.sec.gov. In light
of these risks, uncertainties and assumptions, the events described
in the forward-looking statements might not occur or might occur to
a different extent or at a different time than we have described.
All forward-looking statements in this release are made as of the
date hereof and we undertake no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
About Spectra Energy and Spectra Energy Partners
Spectra Energy Corp (NYSE: SE), a FORTUNE 500 company, is one of
North America's leading pipeline
and midstream companies. Based in Houston, Texas, the company's operations in
the United States and Canada include more than 21,000 miles of
natural gas, natural gas liquids, and crude oil pipelines;
approximately 300 billion cubic feet (Bcf) of natural gas storage;
4.8 million barrels of crude oil storage; as well as natural gas
gathering, processing, and local distribution operations. Spectra
Energy is the general partner of Spectra Energy Partners (NYSE:
SEP), one of the largest pipeline master limited partnerships in
the United States and owner of the
natural gas and crude oil assets in Spectra Energy's U.S.
portfolio. Spectra Energy also has a 50 percent ownership in DCP
Midstream, the largest producer of natural gas liquids and the
largest natural gas processor in the
United States. Spectra Energy has served North American
customers and communities for more than a century.
Logo -
http://photos.prnewswire.com/prnh/20061030/CLM051LOGO
Logo - http://photos.prnewswire.com/prnh/20071107/CLW064
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/spectra-energy-and-spectra-energy-partners-announce-purchase-and-sale-of-spectra-energy-partners-common-units-300246105.html
SOURCE Spectra Energy Partners, LP; Spectra Energy Corp