DBRS Finalizes Provisional Rating on Inter Pipeline Ltd.’s Fixed-to-Floating Rate Subordinated Notes

DBRS Limited (DBRS) finalized its provisional rating of BB (high) with a Stable trend on Inter Pipeline Ltd.’s (IPL or the Company; rated BBB with a Stable trend by DBRS) $750.0 million 6.875% Fixed-to-Floating Rate Subordinated Notes Series 2019-A due March 26, 2079 (the Hybrid Notes). DBRS also assigned an equity weight of 50% to the Hybrid Notes based on the current “DBRS Criteria: Preferred Share and Hybrid Security Criteria for Corporate Issuers” released in November 2018.

DBRS notes that the Hybrid Notes are direct unsecured subordinated obligations of IPL and subordinated in right of payment to the prior payment in full of all present and future senior indebtedness. The Hybrid Notes will be effectively subordinated to all indebtedness and obligations of the Company’s subsidiaries. IPL proposes to use the net proceeds from the sale of the Hybrid Notes to fund capital projects, repay indebtedness under its revolving credit facility and for other general corporate purposes.

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

The principal methodologies are Rating Companies in the Pipeline and Diversified Energy Industry, Rating Companies in the Oil and Gas and Oilfield Services Industries and DBRS Criteria: Preferred Share and Hybrid Security Criteria for Corporate Issuers, which can be found on dbrs.com under Methodologies & Criteria.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrs.com.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.

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