Enbridge Energy Partners Concludes Strategic Review; Announces Midcoast Sale

(RTTNews) - Enbridge Energy Partners, L.P. (EEP) announced it has concluded the strategic review and taken several comprehensive actions to strengthen the partnership's financial position and outlook. EEP said no further restructuring actions are contemplated.

Enbridge Energy Partners has entered into a definitive agreement with its general partner, Enbridge Energy Company, Inc., a subsidiary of Enbridge Inc. (ENB), pursuant to which EECI will acquire all of EEP's ownership interests in the Midcoast Gas Gathering and Processing business. EECI will acquire EEP's 48.4 percent limited partner interest in Midcoast Operating, L.P., EEP's 51.9 percent limited partner interest in Midcoast Energy Partners. L.P., and EEP's 100 percent interest in MEP's general partner for $2.15 billion which includes cash consideration of $1.31 billion and outstanding indebtedness at MEP (which was $840 million as of March 31, 2017).

The Board of Enbridge Energy Management, L.L.C. (EEM), the delegate of Enbridge Energy Partners's General Partner, has declared a quarterly cash distribution of $0.35 per unit, or $1.40 per unit on an annualized basis, on all of the Partnership's outstanding units for the quarter ended March 31, 2017. The distribution is payable on May 15, 2017 to unitholders of record at the close of business on May 8, 2017.

The Joint Funding Arrangement for the Bakken Pipeline System investment was finalized with EEP's initial ownership at 25 percent, and includes an option for EEP to purchase an additional 20 percent from Enbridge at net book value.

EEP has redeemed all of its Series 1 Preferred Units which are held by EECI for $1.2 billion with proceeds from the issuance to EECI of $1.2 billion of Class A common units. The accrued distributions balance in respect of the Series 1 Preferred Units (Deferred Distribution) of $357 million will be repaid in full to EECI with a portion of the cash proceeds from the Midcoast Sale.

EEP has simplified its capital structure and modified its incentive distribution mechanism to better align limited partner and general partner interests.