How to purchase Enbridge’s $1.6 billion pipeline shorts.
Enbridge said Thursday that it is dropping its pipeline shorts and is working with its pipeline business partner to help it reduce its debt.
EnBridge said it has agreed to buy back some of its $2.3 billion in short-term debt, as well as $500 million of debt for pipeline projects that Enbridge has built or is working on, and will work with its debt holders to reduce its balance sheet.
EnBus said it is reducing its balance sheets to avoid defaults, and has agreed with Enbridge to reduce debt.
The companies said they will work to reduce their debt to the point where they can continue to fund capital expenditures and make long-term investments in the pipeline.
EnBanc and EnBond have both said they are working with EnBridge on a plan to reduce the company’s debt and repay its debt, but both have declined to comment further.
The pipeline shorts are one of the latest in a string of moves by Enbridge.
In December, Enbridge reported an annual loss of $9.2 million.
In February, EnBinco, EnPass and EnBW said they had lost more than $15 million in 2016.
Enbridge shares have fallen nearly 8% this year and are down more than 50% from their all-time highs in the spring of 2016.
Enbridgains shares have lost more the past few months as the company has struggled to find ways to deliver on its ambitious infrastructure and energy investments.
The company reported a loss of almost $9 billion in the third quarter of this year.