(Bloomberg) — Enbridge Inc. sold $3.5 billion of debt on Tuesday following a downgrade last week by Moody’s Ratings.

Most Read from Bloomberg

The longest portion of the four-part bond offering, a 30-year security, will yield 145 basis points over Treasuries, according to a person with knowledge of the matter, after earlier discussions for around 170 basis points. A floating rate note maturing in three years, which was announced at the start of the sale, was dropped before pricing.

The bond sale comes after Moody’s downgraded Enbridge and its subsidiaries’ senior unsecured debt to Baa2 from Baa1 on March 29, citing ongoing weakness in its financial profile.

“As Enbridge moves forward with several utility acquisitions and executes on a sizable capital program, we expect that the company will have low levels of financial flexibility and higher leverage,” Moody’s senior credit officer Gavin MacFarlane wrote in a statement.

It plans to use the funds to refinance debt, finance future growth opportunities, including acquisitions, if any, and capital expenditures or for other general corporate purposes. The offering, which follows a $3.5 billion debt deal in November, is not related to three US utility acquisitions, according to spokesperson Gina Sutherland.

Enbridge in September agreed to buy the East Ohio Gas Company, Questar Gas Company and Public Service Co. of North Carolina in a deal that would make the Canadian midstream company the largest natural gas utility franchise in North America.

–With assistance from Michael Gambale.

(Updates with pricing info in second paragraph.)

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.