Spectra Energy Income Fund

Spectra Energy Income Fund

May 01, 2008 17:57 ET

Spectra Energy Income Fund and Spectra Energy Corp Complete Going Private Transaction

CALGARY, ALBERTA--(Marketwire - May 1, 2008) - Spectra Energy Income Fund (TSX:SP.UN) (the "Fund") today announced that Spectra Energy Corp has completed the previously announced transaction by which Spectra Energy Corp, through its wholly-owned subsidiary Westcoast Energy Inc., would take the Fund private. It is expected that the Fund's units will be delisted from the Toronto Stock Exchange at the close of trading on May 6, 2008.

With the completion of the transaction, the Fund's unitholders will receive CDN$11.25 per unit of the Fund (subject to applicable withholding taxes), payable in cash, effected either through a sale or a redemption, as elected by each unitholder.

Following delisting, the Fund will apply to cease to be a reporting issuer under applicable securities legislation.

TD Securities Inc. acted as the financial advisor and McCarthy Tetrault LLP acted as the legal advisor to Spectra Energy in connection with the transaction. RBC Capital Markets acted as the financial advisor and Burnet, Duckworth & Palmer LLP acted as the legal advisor to the Independent Committee of the Spectra Energy Income Fund.

Forward-Looking Statements:

This news release includes statements that do not directly or exclusively relate to historical facts, referred to as "forward-looking statements." You can typically identify forward-looking statements by the use of forward-looking words, such as "may", "will", "could", "should", "project", "believe", "anticipate", "expect", "estimate", "continue", "potential", "plan", "forecast" and other similar words. The forward-looking statements reflect management's current intentions, plans, expectations, beliefs and assumptions about future events, including the outlook for general economic trends, industry trends, commodity prices, capital markets, and the governmental, legal and regulatory environment. Forward-looking statements relate to, among other things, anticipated financial performance, business prospects, strategies, regulatory developments, new services, market forces, commitments and technological developments. These statements are subject to various known and unknown risks and uncertainties that are outside our control and could cause actual results to differ materially from the results expressed or implied by the forward-looking statements. Those risks and uncertainties include market and general economic conditions, future costs, treatment under government regulatory, tax and environmental regimes and the other material risks discussed in the Fund's Annual Information Form dated March 10, 2008, under "Risk Factors" and in the management's discussion and analysis of the Fund and Spectra Energy Facilities LP under the headings "Risk Profile" contained in the Fund's Annual Report for the year ended December 31, 2007. Undue reliance should not be placed on this forward-looking information, which is given as of the date of this release, and the Fund undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise.

About Spectra Energy Income Fund

Spectra Energy Income Fund is an unincorporated open-ended trust established under the laws of the Province of Alberta and owns a 53.8 percent indirect interest in Spectra Energy Facilities LP ("SEF LP") which owns 100 per cent of Spectra Energy Midstream Corporation ("Spectra Midstream"). Spectra Energy indirectly owns the remaining 46.2 percent interest of SEF LP and is the sponsor of the Fund. Spectra Midstream is one of the largest independent midstream operations in the Western Canadian Sedimentary Basin ("WCSB") with interests in thirteen natural gas processing plants with a net processing capacity of 924 mmcf/d and over 1,600 kilometres of natural gas gathering pipelines located throughout natural gas prone areas in the western extent of the WCSB. More information on Spectra Energy Income Fund can be found at: http://www.spectraenergyfund.com.

About Spectra Energy

Spectra Energy Corp (NYSE:SE) is one of North America's premier natural gas infrastructure companies serving three key links in the natural gas value chain: gathering and processing, transmission and storage and distribution. For close to a century, Spectra Energy and its predecessor companies have developed critically important pipelines and related energy infrastructure connecting natural gas supply sources to premium markets. Based in Houston, Texas, the company operates in the United States and Canada approximately 18,000 miles of transmission pipeline, 265 billion cubic feet of storage, natural gas gathering and processing, natural gas liquids operations and local distribution assets. Spectra Energy Corp also has a 50 percent ownership in DCP Midstream, one of the largest natural gas gatherers and processors in the United States. Visit www.spectraenergy.com for more information.

Contact Information

  • Spectra Energy Income Fund
    Bob Bissett
    Media & Analysts
    (403) 705-2008 or (713) 627-4747 (24-hour media line)
    Website: www.spectraenergyfund.com