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DEBT | 12 Months Ended
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Dec. 31, 2019
Debt Disclosure [Abstract] |
DEBT | DEBT On January 22, 2019, Enbridge entered into supplemental indentures with its wholly-owned subsidiaries, SEP and EEP (together, the Partnerships), pursuant to which Enbridge fully and unconditionally guaranteed, on a senior unsecured basis, the payment obligations of the Partnerships with respect to the outstanding series of notes issued under the respective indentures of the Partnerships. Concurrently, the Partnerships entered into a subsidiary guarantee agreement pursuant to which they fully and unconditionally guaranteed, on a senior unsecured basis, the outstanding series of senior notes of Enbridge. See Note 32 - Condensed Consolidating Financial Information for further discussion.
| Weighted Average |  |  |  |  |  |  |  |  |
December 31, | Interest Rate 22 |  |  | Maturity |  | 2019 |  |  | 2018 |
(millions of Canadian dollars) |  |  |  |  |  |  |  |  |  |
Enbridge Inc. |  |  |  |  |  |  |  |  |  |
United States dollar senior notes 1 | 3.8 | % |  | 2022-2049 |  | 8,689 |  |  | 6,419 |
Medium-term notes | 4.2 | % |  | 2020-2064 |  | 7,623 |  |  | 7,323 |
Fixed-to-floating rate subordinated term notes 2,3 | 5.9 | % |  | 2077-2078 |  | 6,550 |  |  | 6,771 |
Floating rate notes 4 |  |  |  | 2020 |  | 1,556 |  |  | 2,389 |
Commercial paper and credit facility draws 5 | 1.9 | % |  | 2021-2024 |  | 5,210 |  |  | 1,999 |
Other 6 |  |  |  |  |  | 5 |  |  | 4 |
Enbridge (U.S.) Inc. |  |  |  |  |  |  |  |
Commercial paper and credit facility draws 7 | 2.1 | % |  | 2021-2024 |  | 1,734 |  |  | 1,065 |
Enbridge Energy Partners, L.P. |  |  |  |  |  |  |  |
Senior notes 8 | 6.0 | % |  | 2021-2045 |  | 3,955 |  |  | 6,214 |
Junior subordinated notes 9 |  |  |  |  | — |  |  | 546 |
Commercial paper and credit facility draws 10 |  |  |  |  | — |  |  | 1,044 |
Enbridge Gas Distribution Inc.11 |  |  |  |  |  |  |  |
Medium-term notes |  |  |  |  |  | — |  |  | 3,695 |
Debentures |  |  |  |  |  | — |  |  | 85 |
Commercial paper and credit facility draws |  |  |  |  |  | — |  |  | 750 |
Enbridge Gas Inc.11 |  |  |  |  |  |  |
Medium-term notes | 4.2 | % |  | 2020-2050 |  | 7,685 |  |  | — |
Debentures | 9.1 | % |  | 2024-2025 |  | 210 |  |  | — |
Commercial paper and credit facility draws | 2.0 | % |  | 2021 |  | 898 |  |  | — |
Enbridge Pipelines (Southern Lights) L.L.C. |  |  |  |  |  |  |  |
Senior notes 12 | 4.0 | % |  | 2040 |  | 1,129 |  |  | 1,257 |
Enbridge Pipelines Inc. |  |  |  |  |  |  |  |
Medium-term notes 13 | 4.2 | % |  | 2020-2049 |  | 5,125 |  |  | 4,225 |
Debentures | 8.2 | % |  | 2024 |  | 200 |  |  | 200 |
Commercial paper and credit facility draws 14 | 2.0 | % |  | 2021 |  | 2,030 |  |  | 2,200 |
Enbridge Southern Lights LP |  |  |  |  |  |  |  |
Senior notes | 4.0 | % |  | 2040 |  | 272 |  |  | 289 |
Spectra Energy Capital, LLC |  |  |  |  |  |  |
Senior notes 15 | 7.1 | % |  | 2032-2038 |  | 224 |  |  | 236 |
Spectra Energy Partners, LP |  |  |  |  |  |  |
Senior secured notes 16 | 6.1 | % |  | 2020 |  | 143 |  |  | 150 |
Senior notes 17 | 4.2 | % |  | 2020-2048 |  | 8,481 |  |  | 8,249 |
Floating rate notes 18 |  |  |  | 2020 |  | 519 |  |  | 546 |
Commercial paper and credit facility draws 19 |  |  |  |  | — |  |  | 2,065 |
Union Gas Limited 11 |  |  |  |  |  |  |
Medium-term notes |  |  |  |  |  | — |  |  | 3,290 |
Debentures |  |  |  |  |  | — |  |  | 125 |
Commercial paper and credit facility draws |  |  |  |  |  | — |  |  | 275 |
Westcoast Energy Inc. |  |  |  |  |  |  |
Senior secured notes |  |  |  |  |  | — |  |  | 33 |
Medium-term notes | 4.5 | % |  | 2020-2041 |  | 1,875 |  |  | 2,175 |
Debentures | 8.6 | % |  | 2020-2026 |  | 375 |  |  | 375 |
Fair value adjustment - Merger Transaction |  |  |  |  | 844 |  |  | 964 |
Other 20 |  |  |  |  |  | (369 | ) |  | (348 | )
Total debt |  |  |  |  |  | 64,963 |  |  | 64,610 |
Current maturities |  |  |  |  |  | (4,404 | ) |  | (3,259 | )
Short-term borrowings 21 |  |  |  |  |  | (898 | ) |  | (1,024 | )
Long-term debt |  |  |  |  |  | 59,661 |  |  | 60,327 |
1 | 2019 - US$6,700 million; 2018 - US$4,700 million.
2 | 2019 - $2,400 million and US$3,200 million; 2018 - $2,400 million and US$3,200 million. For the initial 10 years, the notes carry a fixed interest rate. Subsequently, the interest rate will be floating and set to equal the Canadian Dollar Offered Rate (CDOR) or the London Interbank Offered Rate (LIBOR) plus a margin.
3 | The notes would be converted automatically into Conversion Preference Shares in the event of bankruptcy and related events.
4 | 2019 - US$1,200 million; 2018 - $750 million and US$1,200 million. Carries an interest rate equal to the three-month Bankers' Acceptance Rate plus a margin of 59 basis points or LIBOR plus a margin of 40 or 70 basis points.
5 | 2019 - $5,210 million; 2018 - $1,906 million and US$69 million.
6 | Primarily capital lease obligations.
7 | 2019 - US$1,337 million; 2018 - US$780 million.
8 | 2019 - US$3,050 million; 2018 - US$4,550 million.
9 | 2018 - US$400 million.
10 | 2018 - US$764 million.
11 | Reflects the amalgamation of EGD and Union Gas into Enbridge Gas Inc.
12 | 2019 - US$871 million; 2018 - US$920 million.
13 | Included in medium-term notes is $100 million with a maturity date of 2112.
14 | 2019 - $1,570 million and US$355 million; 2018 - $1,905 million and US$216 million.
15 | 2019 - US$173 million; 2018 - US$173 million.
16 | 2019 - US$110 million; 2018 - US$110 million.
17 | 2019 - US$6,540 million; 2018 - US$6,040 million.
18 | 2019 - US$400 million; 2018 - US$400 million. Carries an interest rate equal to the three-month LIBOR plus a margin of 70 basis points.
19 | 2018 - US$1,512 million.
20 | Primarily unamortized discounts and debt issuance costs.
21 | Weighted average interest rates on outstanding commercial paper were 2.0% as at December 31, 2019 (2018 - 2.3%).
22 | Calculated based on term notes and commercial paper and credit facility draws balances outstanding as at December 31, 2019.
SECURED DEBT Senior secured notes, totaling $143 million as at December 31, 2019, include project financings for the Express-Platte System. Express-Platte System notes payable are secured by the assignment of the Express-Platte System transportation receivables and by the Canadian portion of the Express-Platte pipeline system assets. CREDIT FACILITIES The following table provides details of our committed credit facilities as at December 31, 2019:
|  | Total |  |  |  |  |
| Maturity | Facilities |  | Draws 1 |  | Available |
(millions of Canadian dollars) |  |  |  |  |  |  |
Enbridge Inc. | 2021-2024 | 6,993 |  | 5,210 |  | 1,783 |
Enbridge (U.S.) Inc. | 2021-2024 | 7,132 |  | 1,734 |  | 5,398 |
Enbridge Pipelines Inc. | 2021 2 | 3,000 |  | 2,030 |  | 970 |
Enbridge Gas Inc. | 2021 2 | 2,000 |  | 898 |  | 1,102 |
Total committed credit facilities |  | 19,125 |  | 9,872 |  | 9,253 |
1 | Includes facility draws and commercial paper issuances that are back-stopped by the credit facility.
2 | Maturity date is inclusive of the one year term out option.
On February 7, 2019 and February 8, 2019, we terminated certain Canadian and United States dollar credit facilities, including facilities held by Enbridge, Enbridge Gas, EEP and SEP. We also increased existing facilities or obtained new facilities to replace the terminated ones under Enbridge, Enbridge (U.S.) Inc. and Enbridge Gas. As a result, our total credit facility availability increased by approximately $444 million. On May 16, 2019, Enbridge Inc. entered into a three year, non-revolving, extendible credit facility for $641 million (¥52.5 billion) with a syndicate of Japanese banks. On July 18, 2019, Enbridge Inc. entered into a five year, non-revolving, bilateral credit facility for $500 million with an Asian bank. In addition to the committed credit facilities noted above, we maintain $916 million of uncommitted demand credit facilities, of which $476 million were unutilized as at December 31, 2019. As at December 31, 2018, we had $807 million of uncommitted credit facilities, of which $548 million were unutilized. Our credit facilities carry a weighted average standby fee of 0.1% per annum on the unused portion and draws bear interest at market rates. Certain credit facilities serve as a back-stop to the commercial paper programs and we have the option to extend such facilities, which are currently scheduled to mature from 2021 to 2024. As at December 31, 2019 and 2018, commercial paper and credit facility draws, net of short-term borrowings and non-revolving credit facilities that mature within one year, of $8,974 million and $7,967 million, respectively, are supported by the availability of long-term committed credit facilities and therefore have been classified as long-term debt. LONG-TERM DEBT ISSUANCES During the years ended December 31, 2019 and 2018, we completed the following long-term debt issuances, excluding the debt exchange discussed below:
Company | Issue Date |  |  | Principal Amount |
(millions of Canadian dollars unless otherwise stated) |  |
Enbridge Inc. |  |  |
| October 2019 | 2.99% medium-term notes due October 2029 |  | $1,000 |
| November 2019 | 2.50% senior notes due July 2025 | US$500 |
| November 2019 | 3.13% senior notes due November 2029 | US$1,000 |
| November 2019 | 4.00% senior notes due November 2049 | US$500 |
| March 2018 | Fixed-to-floating rate subordinated notes due March 2078 1 | US$850 |
| April 2018 | Fixed-to-floating rate subordinated notes due April 2078 2 |  | $750 |
| April 2018 | Fixed-to-floating rate subordinated notes due April 2078 3 | US$600 |
Enbridge Gas Inc. |  |  |
| August 2019 | 2.37% medium-term notes due August 2029 |  | $400 |
| August 2019 | 3.01% medium-term notes due August 2049 |  | $300 |
Enbridge Pipelines Inc. |  |  |
| February 2019 | 3.52% medium-term notes due February 2029 |  | $600 |
| February 2019 | 4.33% medium-term notes due February 2049 |  | $600 |
Spectra Energy Partners, LP |  |  |
| August 2019 | 3.24% senior notes due August 2029 4 | US$500 |
| January 2018 | 3.50% senior notes due January 2028 5 | US$400 |
| January 2018 | 4.15% senior notes due January 2048 5 | US$400 |
1 | Notes mature in 60 years and are callable on or after year 10. For the initial 10 years, the notes carry a fixed interest rate of 6.25%. Subsequently, the interest rate will be set to equal the three-month LIBOR plus a margin of 364 basis points from years 10 to 30, and a margin of 439 basis points from years 30 to 60.
2 | Notes mature in 60 years and are callable on or after year 10. For the initial 10 years, the notes carry a fixed interest rate of 6.625%. Subsequently, the interest rate will be set to equal CDOR plus a margin of 432 basis points from years 10 to 30, and a margin of 507 basis points from years 30 to 60.
3 | Notes mature in 60 years and are callable on or after year five. For the initial five years, the notes carry a fixed interest rate of 6.375%. Subsequently, the interest rate will be set to equal the three-month LIBOR plus a margin of 359 basis points from years five to 10, a margin of 384 basis points from years 10 to 25, and a margin of 459 basis points from years 25 to 60.
4 | Issued through Algonquin Gas Transmission, LLC, an operating subsidiary of SEP.
5 | Issued through Texas Eastern, a wholly-owned operating subsidiary of SEP.
LONG-TERM DEBT REPAYMENTS During the years ended December 31, 2019 and 2018, we completed the following long-term debt repayments, excluding the debt exchange discussed below:
Company | Retirement/Repayment Date |  |  | Principal Amount |  | Cash Consideration 1 |
(millions of Canadian dollars unless otherwise stated) |  |  |
Enbridge Inc. |  |  |  |
Repayment |  |  |  |
| February 2019 | 4.10% medium-term notes |  | $300 |  |
| May 2019 | Floating rate notes |  | $750 |  |
| September 2019 | 4.77% medium-term notes |  | $400 |  |
Enbridge Energy Partners, L.P. |  |  |
Redemption |  |  |
| February 2019 | 8.05% fixed/floating rate junior subordinated notes due 2067 | US$400 |  |
| December 2019 | 5.20% senior notes due 2020 | US$500 |  | US$504 |
| December 2019 | 4.38% senior notes due 2020 | US$500 |  | US$509 |
Repayment |  |  |
| March 2019 | 9.88% senior notes | US$500 |  |
| April 2018 | 6.50% senior notes | US$400 |  |
| October 2018 | 7.00% senior notes | US$100 |  |
Enbridge Income Fund |  |  |  |
Repayment |  |  |  |
| December 2018 | 4.00% medium-term notes |  | $125 |  |
Enbridge Pipelines (Southern Lights) L.L.C. |  |  |
Repayment |  |  |
| June and December 2019 | 3.98% senior notes due 2040 | US$49 |  |
| June and December 2018 | 3.98% senior notes due 2040 | US$43 |  |
Enbridge Pipelines Inc. |  |  |
Repayment |  |  |
| November 2019 | 4.49% medium-term notes |  | $200 |  |
| November 2019 | 4.49% medium-term notes |  | $100 |  |
| November 2018 | 6.62% medium-term notes |  | $170 |  |
| November 2018 | 6.62% medium-term notes |  | $130 |  |
Enbridge Southern Lights LP |  |  |
Repayment |  |  |
| July and December 2019 | 4.01% senior notes due 2040 |  | $17 |  |
| January, July and December 2018 | 4.01% senior notes due 2040 |  | $27 |  |
Midcoast Energy Partners, L.P. |  |  |  |
Redemption |  |  |  |
| July 2018 2 | 3.56% senior notes due 2019 | US$75 |  | US$76 |
| July 2018 2 | 4.04% senior notes due 2021 | US$175 |  | US$182 |
| July 2018 2 | 4.42% senior notes due 2024 | US$150 |  | US$161 |
Spectra Energy Capital, LLC |  |  |  |
Repurchase via Tender Offer |  |  |
| March 2018 2 | 6.75% senior unsecured notes due 2032 | US$64 |  | US$80 |
| March 2018 2 | 7.50% senior unsecured notes due 2038 | US$43 |  | US$59 |
Redemption |  |  |  |
| March 2018 2 | 5.65% senior unsecured notes due 2020 | US$163 |  | US$172 |
| March 2018 2 | 3.30% senior unsecured notes due 2023 | US$498 |  | US$508 |
Repayment |  |  |  |
| April 2018 | 6.20% senior notes | US$272 |  |
| July 2018 | 6.75% senior notes | US$118 |  |
Spectra Energy Partners, LP |  |  |  |
Repayment |  |  |  |
| September 2018 | 2.95% senior notes | US$500 |  |
Union Gas Limited |  |  |  |
Repayment |  |  |  |
| April 2018 | 5.35% medium-term notes |  | $200 |  |
| August 2018 | 8.75% debentures |  | $125 |  |
| October 2018 | 8.65% senior debentures |  | $75 |  |
Westcoast Energy Inc. |  |  |  |
Repayment |  |  |  |
| January 2019 | 5.60% medium-term notes |  | $250 |  |
| January 2019 | 5.60% medium-term notes |  | $50 |  |
| May and November 2019 | 6.90% senior secured notes |  | $26 |  |
| May and November 2019 | 4.34% senior secured notes |  | $5 |  |
| December 2019 | 1.00% senior secured notes |  | $2 |  |
| May and November 2018 | 6.90% senior secured notes due 2019 |  | $26 |  |
| May and November 2018 | 4.34% senior secured notes due 2019 |  | $9 |  |
| September 2018 | 8.50% debentures |  | $150 |  |
1 | Cash consideration disclosed for repayments where the cash paid differs from the principal amount.
2 | The loss on debt extinguishment of $64 million (US$50 million), net of the fair value adjustment recorded upon completion of the Merger Transaction, was reported within Interest expense in the Consolidated Statements of Earnings.
DEBT EXCHANGE On December 21, 2018, Enbridge and the Fund completed a transaction to exchange certain series of the Legacy Fund Notes for an equal principal amount of newly issued medium-term notes of Enbridge, having financial terms that are the same as the financial terms of the Fund Notes. DEBT COVENANTS Our credit facility agreements and term debt indentures include standard events of default and covenant provisions whereby accelerated repayment and/or termination of the agreements may result if we were to default on payment or violate certain covenants. As at December 31, 2019, we were in compliance with all debt covenants. INTEREST EXPENSE
Year ended December 31, | 2019 |  | 2018 |  | 2017 |
(millions of Canadian dollars) |  |  |  |  |  |
Debentures and term notes | 2,783 |  | 3,011 |  | 3,011 |
Commercial paper and credit facility draws | 273 |  | 171 |  | 206 |
Amortization of fair value adjustment - Spectra Energy acquisition | (67 | ) | (131 | ) | (270 | )
Capitalized | (326 | ) | (348 | ) | (391 | )
| 2,663 |  | 2,703 |  | 2,556 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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