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Spectra Energy and Spectra Energy Partners close on drop-down of remaining U.S. assets


Published Nov 5, 2013
Spectra Energy

Spectra Energy Corp announced closing on the drop-down of substantially all of the remaining U.S. transmission, storage and liquid assets to its Master Limited Partnership (MLP) Spectra Energy Partners. The drop-down consideration to Spectra Energy included $2.3 billion in cash, the transfer of $2.4 billion of debt to SEP, 167.6 million newly issued LP units and 3.4 million newly issued GP units. An additional closing for the remainder of the Southeast Supply Header assets is expected in the fourth quarter of 2014. After the second closing, Spectra Energy will have received a total of approximately 172 million newly issued LP units and 3.5 million GP units.

"This transaction-which we closed earlier than expected-is a win for investors in both Spectra Energy and Spectra Energy Partners as it enables accelerated dividend and distribution growth at both entities," said Greg Ebel, president and chief executive officer, Spectra Energy and president, CEO, and chairman of the board, Spectra Energy Partners. "The tremendous combination of a large C-Corporation with one of the largest fee-based MLPs will provide us with the scale and financial flexibility to execute on $25 billion in growth projects this decade and allow us to effectively pursue additional opportunities as they arise."

Tags: Spectra Energy, Spectra Energy Partners




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