DBRS Rates Inter Pipeline Ltd.’s $900 Million Note Issue at BBB (high), Stable Trend

DBRS has today assigned a rating of BBB (high) with a Stable trend to the CAD 500 million 4.637% Series 5 Senior Unsecured Medium-Term Notes, maturing on May 30, 2044, and the CAD 400 million Series 6 Senior Unsecured Medium Term Notes with a floating interest rate of three-month Canadian Dealer Offered Rate plus 49 basis points, maturing on May 30, 2017 (collectively, the Notes), issued by Inter Pipeline Ltd. (IPL). The settlement date for the Notes is May 30, 2014.

The Notes will rank equally in right of payment, except as to sinking funds or analogous provisions and as to claims preferred by operation of law, with all other existing and future senior unsecured debt of IPL. The net proceeds to IPL from the sale of the Notes will be used to pay down existing bank indebtedness incurred through funding its capital expenditure program and for other general corporate purposes.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating Pipeline and Diversified Energy Companies (January 2014), which can be found on our website under Methodologies.