Enbridge Inc To Sell Interest In U.S. Segment Of Alberta Clipper Pipeline To EEP

(RTTNews) - Enbridge Energy Partners L.P. (EEP) announced it has received a proposal initiated by Enbridge Inc. (ENB) through Enbridge Energy Company, Inc., EEP's general partner, under which Enbridge would drop down its 66.7 percent interest in the U.S. segment of the Alberta Clipper Pipeline to EEP for aggregate consideration of approximately $900 million. The proposed consideration includes cash of approximately $300 million, plus approximately $600 million of a new Class E limited partner equity units to be issued to Enbridge by Enbridge Energy Partners.

Enbridge Energy Partners estimates the proposed drop down is immediately accretive to distributable cash flow per unit by approximately 3 percent. The proposed terms would not require EEP to issue any equity in the public market.

The U.S. segment of the Alberta Clipper Pipeline is a 36-inch diameter, 325 mile long crude oil pipeline from the U.S. border near Neche, North Dakota to Superior, Wisconsin.