Finance - Debt
Enbridge is expanding its North American pipeline network, which carries the bulk of Canadian crude oil exports to the U.S., Reuters reported.
The tenders will be funded through the net proceeds from previously completed asset sales and financing transactions, and will reduce outstanding debt.
The Canadian oil producer said it expects to implement and complete the restructuring transaction late in the third quarter or early in the fourth quarter of 2016.
Oilfield services still face bankruptcy threat, but rest of industry relatively in the clear for this year.
Tallgrass Energy Partners LP and subsidiary Tallgrass Energy Finance Corp. will offer $400 million in senior unsecured notes due 2024 in a private placement the company said Aug. 16.
The loan will be from one or more commercial banks, and will be secured by the same collateral securing the revolving credit facility.
Analysts’ report describes massive amount of maturing, expiring debt facing oilfield services sector.
The company said midstream and power assets would likely be pledged to support the existing and new facilities as well as the second-lien notes.
About 50% of the weight of this index is in double-B bonds, the highest-rated of junk debt, Reuters said.
Investors are concerned that producers will be unable to keep savings they say are tied to efficiency improvements as service companies begin to assert themselves after two years of discounts.
The company will swap equity for debt forgiveness, and partners such as Nabors Industries will see a vastly reduced stake in the company.
The net proceeds will repay debts under the revolving credit agreement.