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"EEP holds some of our most strategic and high quality, long-life, critical energy infrastructure assets in North America," said Al Monaco, President and CEO of Enbridge. "The objective of the strategic review was to re-establish EEP as an effective sponsored vehicle for the benefit of EEP unitholders and Enbridge. We believe today's actions, and those undertaken earlier this year, achieve this objective by returning EEP to a pure-play liquids pipeline MLP - with premium low-risk assets, a strong financial position, self-funding capability, ample distribution coverage and visible growth. Both EEP unitholders and Enbridge shareholders will continue to derive value from these unique assets in the near term and in the years to come." On January 27, EEP and Enbridge announced interim measures to alleviate EEP's near-term funding requirements and enhance its cash flows, including the acquisition by Enbridge of the public float in MEP, the finalization of a joint funding arrangement for the U.S. portion of the Line 3 Replacement Project (L3R), and the exercise of EEP's option for an additional 15 percent interest in the cash generating Eastern Access Project. Those initiatives, together with those announced today, reposition EEP as a compelling low-risk investment. The transactions result in a more streamlined capital structure at EEP and simplify Enbridge's holdings in the Partnership by eliminating certain classes of preferred and partnership units. There are no other material support actions by Enbridge required, nor are any further actions contemplated. The combined restructuring actions have the overall effect of Enbridge acquiring all of EEP's gas gathering and processing business and a 99 percent interest in L3R in exchange for approximately US$1.1 billion in net cash and the transfer to EEP of a 15 percent interest in the Eastern Access Expansion. EEP will initially hold a 25 percent interest in the Bakken System Pipeline investment and an initial 1 percent interest in L3R with options to increase its ownership in these two strong projects by 20 percent and 39 percent, respectively.

For the original version including any supplementary images or video, visit https://www.bloomberg.com/press-releases/2017-04-28/enbridge-inc-announces-conclusion-and-outcomes-of-enbridge-energy-partners-l-p-strategic-review

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