SOURCE: Enbridge Income Fund Holdings Inc.

Enbridge Income Fund Holdings Inc.

November 10, 2014 09:27 ET

Enbridge Income Fund Completes Acquisition of Natural Gas and Diluent Pipeline Interests for $1.76B

Enbridge Income Fund Holdings Inc. Announces 12.1 Percent Dividend Increase

CALGARY, AB--(Marketwired - November 10, 2014) - Enbridge Income Fund Holdings Inc. (the Company) (TSX: ENF) and Enbridge Income Fund (the Fund) announced the closing of the acquisition of the 50 percent interest in the U.S. segment of the Alliance Pipeline and the purchase of Class A Units which provide a defined cash flow stream from the Southern Lights Pipeline (collectively, the Assets) by indirect wholly-owned subsidiaries of the Fund for $1.76 billion (the Transaction) from indirect wholly-owned subsidiaries of Enbridge Inc. (TSX: ENB) (NYSE: ENB) which was announced in the Company's news release dated September 22, 2014.

The Board of Directors of the Company declared a dividend payable on December 15, 2014 to shareholders of record on December 1, 2014 in the sum of $0.1285 per common share of the Company (Common Share), representing a 12.1 percent increase to $1.542 per Common Share on an annualized basis. The dividend is designated an eligible dividend for Canadian tax purposes, which qualifies for the enhanced dividend tax credit.

"We are very pleased to close this transaction and add these desirable assets to our portfolio," said Perry Schuldhaus, the president of the Company. "These assets are supported by strong fundamentals and commercial terms, and are ideally suited for our low-risk business model. They bolster and diversify the Fund's future cash flow and generate healthy accretion which supports an immediate 12.1 percent increase in the dividend. With 11 dividend increases in our 12-year history, the Company and the Fund have delivered solid performance, paying our investors growing dividends and providing an attractive return on investment."

Pursuant to the Transaction, the Company acquired 13,860,000 ordinary units of the Fund (Fund Units) at a price of $30.35 per Fund Unit, which was funded by the issuance of 11,100,000 Subscription Receipts pursuant to a short form prospectus at a price of $30.35 per Subscription Receipt and the issuance of 2,760,000 Common Shares to Enbridge Inc. at a price of $30.35 per Common Share. Holders of Subscription Receipts received one Common Share for each Subscription Receipt prior to closing of the Transaction together with an amount equivalent to the dividend declared on the Common Shares to shareholders of record on October 31, 2014. The issued and outstanding share capital of the Company now consists of an aggregate of 70,351,000 Common Shares and one Special Voting Share. Enbridge Inc. holds 14,002,000 (19.9 percent) of the issued and outstanding Common Shares and the Special Voting Share. The Company now holds 70,351,000 (88.1 percent) of the Fund Units, with Enbridge Inc. holding the remaining 9,500,000 (11.9 percent) Fund Units. Pursuant to the Transaction, Enbridge Inc. acquired 15,200,000 ECT Preferred Units, Series 5 at a price of $30.35 per unit and continues to own all of the 87,665,750 issued and outstanding ECT Preferred Units, which are convertible at any time and from time to time into Fund Units on a 1:1 basis. If Enbridge Inc. were to convert all of its ECT Preferred Units, it would own 58.0 percent of the issued and outstanding Fund Units. Enbridge Inc.'s ownership of Fund Units, ECT Preferred Units and Common Shares represents a 66.4 percent economic interest in the Fund.

Eligible shareholders may participate in the Company's Dividend Reinvestment Plan (DRIP), where they may elect, without brokerage fees, to automatically reinvest their monthly dividends in additional Common Shares. Details of the DRIP are available on the Company's website. Shareholders who wish to participate in the DRIP should contact their investment dealer for further information and to enroll.

ABOUT ENBRIDGE INCOME FUND HOLDINGS INC.

Enbridge Income Fund Holdings Inc. is a publicly traded corporation. The Company, through its investment in Enbridge Income Fund, holds high quality, low risk energy infrastructure assets. The Fund's assets include interests in more than 500 megawatts of renewable and alternative power generation capacity, a portfolio of liquids transportation and storage businesses including Class A Units in the Southern Lights Pipeline and a 50 percent interest in the Alliance Pipeline. Information about Enbridge Income Fund Holdings Inc. is available on the Company's website at www.enbridgeincomefund.com.

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