SPECTRA ENERGY PARTNERS, LP as Issuer and WELLS FARGO BANK, NATIONAL ASSOCIATION as Trustee SIXTH SUPPLEMENTAL INDENTURE Dated as of June 7, 2017

EX-4.3 2 v468587_ex4-3.htm EXHIBIT 4.3

 

Exhibit 4.3

 

 

 

 

 

SPECTRA ENERGY PARTNERS, LP
as Issuer

 

and

 

WELLS FARGO BANK, NATIONAL ASSOCIATION
as Trustee

 

SIXTH

 

SUPPLEMENTAL

 

INDENTURE

 

Dated as of June 7, 2017

 

 

 

$400,000,000
FLOATING RATE SENIOR NOTES DUE 2020

 

 

 

 

 

 

 

TABLE OF CONTENTS

  

	Page
Article I ESTABLISHMENT	2
Section 1.01.   Establishment	2
Article II DEFINITIONS AND INCORPORATION BY REFERENCE	3
Section 2.01.   Definitions	3
Section 2.02.   Other Definitions	4
Article III THE NOTES	4
Section 3.01.   Form	4
Section 3.02.   Issuance of Additional Notes	4
Article IV REDEMPTION AND PREPAYMENT	5
Section 4.01.   Optional Redemption	5
Article V COVENANTS	5
Section 5.01.   Limitations on Liens	5
Section 5.02.   Restriction of Sale-Leaseback Transactions	7
Article VI SATISFACTION AND DISCHARGE DEFEASANCE	7
Section 6.01.   Satisfaction and Discharge Defeasance	7
Section 6.02.   Covenant Defeasance	8
Article VII MISCELLANEOUS	8
Section 7.01.   Integral Part	8
Section 7.02.   Adoption, Ratification and Confirmation	8
Section 7.03.   Counterparts	8
Section 7.04.   The Trustee	8
Section 7.05.   Governing Law	9
EXHIBIT А: Form of Note

  

 

THIS SIXTH SUPPLEMENTAL INDENTURE dated as of June 7, 2017 (this “Supplemental Indenture”) between SPECTRA ENERGY PARTNERS, LP, а Delaware limited partnership (the “Partnership”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, а national banking association, as trustee (the “Trustee”),

 

WITNESSETH

 

WHEREAS, the Partnership has heretofore entered into an Indenture, dated as of June 9, 2011 (the “Original Indenture”), with Wells Fargo Bank, National Association, as trustee, as supplemented by the Third Supplemental Indenture, dated as of June 30, 2014 (the “Third Supplemental Indenture” and, together with the Original Indenture, the “Base Indenture”);

 

WHEREAS, the Base Indenture, as supplemented by this Supplemental Indenture, is herein called the “Indenture;”

 

WHEREAS, а new series of Debt Securities may at any time be established in accordance with the provisions of the Base Indenture, and the form and terms of such series may be established by а supplemental indenture executed by the Partnership and the Trustee;

 

WHEREAS, the Partnership proposes to establish via this Supplemental Indenture a new series of Debt Securities; and

 

WHEREAS, all conditions necessary to authorize the execution and delivery of this Supplemental Indenture and to make it а valid and binding obligation of the Partnership have been done or performed.

 

NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

Article I
ESTABLISHMENT

 

Section 1.01.      Establishment.

  

(a)               There is hereby established a new series of Debt Securities to be issued under the Indenture, to be designated as the Partnership’s Floating Rate Senior Notes due 2020 (the “Notes”).

 

(b)               There is to be authenticated and delivered under the Indenture $400,000,000 aggregate principal amount of the Notes, and from time to time thereafter there may be authenticated and delivered an unlimited principal amount of Additional Notes (as defined below).

 

(c)               The Depositary with respect to the Notes shall be The Depository Trust Company (“DTC”). As permitted by Section 2.15(c)(iii) of the Base Indenture, the Depositary shall surrender any Global Security representing the Notes in exchange for individual Notes in definitive form if an Event of Default with respect to such Notes has occurred and is continuing, and the Depositary requests the issuance of such Notes in definitive form.

 

 

(d)               Each Note shall be dated the date of authentication thereof and shall bear interest from June 7, 2017 or from the most recent date to which interest has been paid or duly provided for.

 

(e)               No Notes shall be entitled to the benefits of any Guarantee pursuant to Article XIV of the Base Indenture.

 

(f)                If and to the extent that the provisions of the Base Indenture are duplicative of, or in contradiction with, the provisions of this Supplemental Indenture, the provisions of this Supplemental Indenture shall govern.

 

Article II
DEFINITIONS AND
INCORPORATION BY REFERENCE

 

Section 2.01.      Definitions.

 

All capitalized terms used herein and not otherwise defined below shall have the meanings ascribed thereto in the Base Indenture. The following are additional definitions used in this Supplemental Indenture:

 

“Consolidated Net Tangible Assets” means, at any date of determination, the total amount of consolidated assets of the Partnership and its Subsidiaries after deducting therefrom (1) all current liabilities (excluding (а) any current liabilities that by their terms are extendable or renewable at the option of the obligor thereon to а time more than 12 months after the time as of which the amount thereof is being computed and (b) current maturities of long-term debt), and (2) the value (net of any applicable reserves) of all goodwill, trade names, trademarks, patents and other like intangible assets, all as set forth, or on а pro forma basis would be set forth, on the consolidated balance sheet of the Partnership and its Subsidiaries for the most recently completed fiscal quarter, prepared in accordance with GAAP.

 

“Principal Property” means, whether currently owned or leased or subsequently acquired, any pipeline, gathering system, terminal, storage facility, processing plant or other plant or facility located in the United States of America or any territory or political subdivision thereof owned or leased by the Partnership or any of its Subsidiaries and used in transporting, distributing, terminalling, gathering, treating, processing, marketing or storing natural gas, natural gas liquids or other hydrocarbons, except (1) any property or asset consisting of inventories, furniture, office fixtures and equipment (including data processing equipment), vehicles and equipment used on, or useful with, vehicles (but excluding vehicles that generate transportation revenues) and (2) any such pipeline or other plant or facility that, in the good faith opinion of the Board of Directors as evidenced by resolutions of the Board of Directors, is not material in relation to the activities of the Partnership and its Subsidiaries, taken as а whole.

 

“Principal Subsidiary” means any of the Partnership’s Subsidiaries that owns or leases, directly or indirectly, а Principal Property.

 

“Sale-Leaseback Transaction” means the sale or transfer by the Partnership or any Principal Subsidiary of any Principal Property to а Person (other than the Partnership or а Principal Subsidiary) and the taking back by the Partnership or any Principal Subsidiary, as the case may be, of а lease of such Principal Property.

 

 

The following definitions shall supercede the definitions of such terms in the Base Indenture:

 

“Officer” means with respect to a Person, the Chairman of the Board, the President, any Vice President, the Treasurer, any Assistant Treasurer, Controller, Secretary, Corporate Secretary, Assistant Secretary, Assistant Corporate Secretary or any Assistant Vice President of such Person.

 

“Officers’ Certificate” means a certificate signed by two Officers of the General Partner.

 

Section 2.02.      Other Definitions.

  

Term		Defined in Section
Additional Notes		3.02
Base Indenture		Recitals
DTC		1.01(c)
Indenture		Recitals
Notes		1.01(a)
Partnership		Preamble
Supplemental Indenture		Preamble
Trustee		Preamble

  

Article III
THE NOTES

 

Section 3.01.      Form.

  

The Notes shall be issued initially in the form of one or more Global Securities. The Notes will be issued in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. The Notes and Trustee’s certificate of authentication shall be substantially in the form of Exhibit А hereto, the terms of which are incorporated in and made а part of this Supplemental Indenture, and the Partnership and the Trustee, by their execution and delivery of this Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby.

 

Section 3.02.      Issuance of Additional Notes.

 

The Partnership may, from time to time, without notice to or the consent of the Holders of the Notes or the Trustee, increase the principal amount of the Notes by issuing additional Notes (“Additional Notes”). Any Additional Notes so issued will have the same interest rate determination, maturity and other terms (other than the date of issuance and, under certain circumstances, the date from which interest thereon will begin to accrue and the initial interest payment date), and will carry the same right to receive accrued and unpaid interest, as the Notes that were previously issued, and such Additional Notes will form а single series with such Notes for all purposes under the Indenture.

 

 

Section 3.03.      Execution of Debt Securities.

 

The first sentence of Section 2.04 of the Base Indenture shall be replaced in its entirety by the following: The Debt Securities shall be signed on behalf of the Partnership by any Officer of the General Partner and, if the seal of the General Partner is reproduced thereon, it shall be attested by its Corporate Secretary, an Assistant Corporate Secretary, a Treasurer or an Assistant Treasurer (or by Officers holding positions comparable to such offices).

 

Article IV
REDEMPTION AND PREPAYMENT

 

Section 4.01.      Optional Redemption. The Notes are not redeemable prior to their maturity.

 

Article V
COVENANTS

 

The following covenants, in addition to the covenants set forth in Article IV of the Base Indenture, shall apply to the Notes:

 

Section 5.01.      Limitations on Liens.

  

While any of the Notes remain outstanding, the Partnership shall not, and shall not permit any of its Principal Subsidiaries to, create, or permit to be created or to exist, any Lien upon any Principal Property of the Partnership or any of its Principal Subsidiaries, or upon any equity interests of any Principal Subsidiary, whether such Principal Property is, or equity interests are, owned on or acquired after the date of the Indenture, to secure any Debt, unless the Notes then outstanding are equally and ratably secured by such Lien for so long as any such Debt is so secured, other than:

 

(a)               purchase money mortgages, or other purchase money Liens of any kind upon property acquired by the Partnership or any Principal Subsidiary after the date of the Indenture, or Liens of any kind existing on any property or any equity interests at the time of the acquisition thereof (including Liens that exist on any property or any equity interests of а Person that is consolidated with or merged with or into the Partnership or any Principal Subsidiary or that transfers or leases all or substantially all of its properties or assets to the Partnership or any Principal Subsidiary), or conditional sales agreements or other title retention agreements and leases in the nature of title retention agreements with respect to any property hereafter acquired, so long as no such Lien shall extend to or cover any other property of the Partnership or such Principal Subsidiary;

 

(b)               Liens upon any property of the Partnership or any Principal Subsidiary or any equity interests of any Principal Subsidiary existing as of the date of the initial issuance of the Notes or upon the property or any equity interests of any entity, which Liens existed at the time such entity became а Subsidiary of the Partnership;

 

(c)               pledges or deposits to secure: (i) any governmental charges or levies; (ii) obligations under workers’ compensation laws, unemployment insurance and other social security legislation; (iii) performance in connection with bids, tenders, contracts (other than contracts for the payment of money) or leases to which the Partnership or any Principal Subsidiary is а party; (iv) public or statutory obligations of the Partnership or any Principal Subsidiary; and (v) surety, stay, appeal, indemnity, customs, performance or return-of-money bonds or pledges or deposits in lieu thereof;

 

 

(d)               Liens created by or resulting from any litigation or proceeding that at the time is being contested in good faith by appropriate proceedings, including Liens relating to judgments thereunder as to which the Partnership or any Principal Subsidiary has not exhausted its appellate rights;

 

(e)               Liens on deposits required by any Person with whom the Partnership or any Principal Subsidiary enters into forward contracts, futures contracts, swap agreements or other commodities contracts in the ordinary course of business and in accordance with established risk management policies and Liens in connection with leases (other than capital leases) made, or existing on property acquired, in the ordinary course of business;

 

(f)                easements (including, without limitation, reciprocal easement agreements and utility agreements), zoning restrictions, rights-of-way, covenants, consents, reservations, encroachments, variations and other restrictions on the use of property or minor irregularities in title thereto, charges or encumbrances (whether or not recorded) affecting the use of real property and which are incidental to, and do not materially impair the use of such property in the operation of the business of the Partnership and its Subsidiaries, taken as а whole, or the value of such property for the purpose of such business;

 

(g)               Liens in favor of the United States of America, any State, any foreign country or any department, agency or instrumentality or political subdivision of any such jurisdiction, to secure partial, progress, advance or other payments pursuant to any contract or statute or to secure any Debt incurred for the purpose of financing all or any part of the purchase price or the cost of constructing or improving the property subject to such Liens, including, without limitation, Liens to secure Debt of the pollution control or industrial revenue bond type;

 

(h)               Liens of any kind upon any property acquired, constructed, developed or improved by the Partnership or any Principal Subsidiary (whether alone or in association with others) after the date of the Indenture that are created prior to, at the time of, or within 12 months after such acquisition (or in the case of property constructed, developed or improved, after the completion of such construction, development or improvement and commencement of full commercial operation of such property, whichever is later) to secure or provide for the payment of any part of the purchase price or cost thereof; provided that in the case of such construction, development or improvement the Liens shall not apply to any property theretofore owned by the Partnership or any Principal Subsidiary other than theretofore unimproved real property;

 

(i)                 Liens in favor of the Partnership, one or more Principal Subsidiaries, one or more wholly-owned Subsidiaries of the Partnership or any of the foregoing in combination;

 

(j)                 the replacement, extension or renewal (or successive replacements, extensions or renewals), as а whole or in part, of any Lien, or of any agreement, referred to in the clauses above, or the replacement, extension or renewal of the Debt secured thereby (not exceeding the principal amount of Debt secured thereby, other than to provide for the payment of any underwriting or other fees related to any such replacement, extension or renewal, as well as any premiums owed on and accrued and unpaid interest payable in connection with any such replacement, extension or renewal); provided that such replacement, extension or renewal is limited to all or а part of the same property that secured the Lien replaced, extended or renewed (plus improvements thereon or additions or accessions thereto); or

 

 

(k)               any Lien not excepted by the foregoing clauses; provided that immediately after the creation or assumption of such Lien the aggregate principal amount of Debt of the Partnership or any Principal Subsidiary secured by all Liens created or assumed under the provisions of this clause, together with all net sale proceeds from any Sale-Leaseback Transactions (reduced by the amounts applied pursuant to 5.02(a) and 5.02(c)(1)) shall not exceed an amount equal to 15% of the Consolidated Net Tangible Assets for the fiscal quarter that was most recently completed prior to the creation or assumption of such Lien.

 

Notwithstanding the foregoing, for purposes of making the calculation set forth in clause (k) of the preceding paragraph with respect to any such secured Debt of а non-wholly-owned Principal Subsidiary of the Partnership with no recourse to the Partnership or any wholly-owned Principal Subsidiary thereof, only that portion of the aggregate principal amount of such secured Debt reflecting the Partnership’s pro rata ownership interest in such non-wholly-owned Principal Subsidiary shall be included in calculating compliance herewith.

 

Section 5.02.      Restriction of Sale-Leaseback Transactions.

  

While the Notes remain outstanding, the Partnership shall not and shall not permit any of its Principal Subsidiaries to, engage in а Sale-Leaseback Transaction, unless:

 

(a)               the Sale-Leaseback Transaction occurs within one year from the date of acquisition of the relevant Principal Property or the date of the completion of construction or commencement of full operations on such Principal Property, whichever is later, and the Partnership has elected to designate, as а credit against (but not exceeding) the purchase price or cost of construction of such Principal Property, an amount equal to all or а portion of the net sale proceeds from such Sale-Leaseback Transaction (with any such amount not being so designated to be applied as set forth in clause (с) below);

 

(b)               the Partnership or such Principal Subsidiary would be entitled to incur Debt secured by а Lien on the Principal Property subject to the Sale-Leaseback Transaction in а principal amount equal to or exceeding the net sale proceeds from such Sale-Leaseback Transaction without equally and ratably securing the Notes; or

 

(c)               the Partnership or such Principal Subsidiary within а 270-day period after such Sale-Leaseback Transaction, applies or causes to be applied an amount not less than the net sale proceeds from such Sale-Leaseback Transaction to (1) the prepayment, repayment, redemption or retirement of any unsubordinated Debt of the Partnership or any of its Subsidiaries or (2) invest in another Principal Property.

 

 

Article VI
SATISFACTION AND DISCHARGE
DEFEASANCE

 

Section 6.01.      Satisfaction and Discharge Defeasance.

 

The provisions of Article XI of the Base Indenture relating to both satisfaction and discharge and defeasance shall be applicable to the Notes.

 

Section 6.02.      Covenant Defeasance.

  

If the Partnership effects а covenant defeasance of the Notes pursuant to Sections 11.02(b) and 11.03 of the Base Indenture, the Partnership shall cease to have any obligation to comply with the covenants set forth in Sections 5.01 and 5.02 hereof.

 

Article VII
MISCELLANEOUS

 

Section 7.01.      Integral Part.

 

This Supplemental Indenture constitutes an integral part of the Indenture.

 

Section 7.02.      Adoption, Ratification and Confirmation.

 

The Base Indenture, as supplemented and amended by this Supplemental Indenture, is in all respects hereby adopted, ratified and confirmed.

 

Section 7.03.      Counterparts.

  

This Supplemental Indenture may be executed in any number of counterparts, each of which when so executed shall be deemed an original; and all such counterparts shall together constitute but one and the same instrument. Delivery of an executed counterpart of this Supplemental Indenture by facsimile or electronic transmission shall be equally as effective as delivery of an original executed counterpart of this Supplemental Indenture. Any party delivering an executed counterpart of this Supplemental Indenture by facsimile or electronic transmission also shall deliver an original executed counterpart of this Supplemental Indenture, but the failure to deliver an original executed counterpart shall not affect the validity, enforceability and binding effect of this Supplemental Indenture.

 

Section 7.04.      The Trustee.

 

The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which are made solely by the Partnership. The Trustee makes no representations as to the validity or sufficiency of this Supplemental Indenture or of the Notes, except that the Trustee represents that it is duly authorized to execute and deliver this Supplemental Indenture, authenticate the Notes and perform its obligations hereunder. The Trustee shall not be accountable for the use or application by the Partnership of any of the Notes or of the proceeds thereof.

 

 

Section 7.05.      Governing Law.

 

THIS SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

[Signature page follows]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the day and year first above written.

 

	Spectra Energy Partners, LP
	By:	Spectra Energy Partners (DE) GP, LP,
		its general partner
	By:	Spectra Energy Partners GP, LLC,
		its general partner
	By:	/s/ Stephen J. Neyland
	Name:	Stephen J. Neyland
	Title:	Vice President - Finance
	Wells Fargo Bank, National Association,
	As Trustee
	By:	/s/ Patrick Giordano
	Name:	Patrick Giordano
	Title:	Vice President

 

 

EXHIBIT A

 

(Form of Face of Note)

 

CUSIP 84756N AJ8	No. ______
ISIN US84756NAJ81	$___________

  

SPECTRA ENERGY PARTNERS, LP

 

Floating Rate Senior Notes due 2020

 

Spectra Energy Partners, LP, а Delaware limited partnership, herein called the “Partnership”, which term includes any successor Person under the Indenture hereinafter referred to, promises to pay to_______, or registered assigns, the principal sum of ___________ Dollars [or such greater or lesser amount as may be endorsed on the Schedule attached hereto]¹ on June 5, 2020.

 

Interest Payment Dates: March 5, June 5, September 5 and December 5

 

Record Dates: February 21, May 21, August 21 and November 21

 

	Spectra Energy Partners, LP
	By:	Spectra Energy Partners (DE) GP, LP, its general partner
	By:	Spectra Energy Partners GP, LLC, its general partner
	By:
	Name:
	Title:

 

¹ To be included only if the Note is issued in global form.

 

 

TRUSTEE’S CERTIFICATE
OF AUTHENTICATION

 

This is one of the Debt Securities of the series designated therein referred to in the within- mentioned Indenture.

 

	Wells Fargo Bank, National Association,
	As Trustee
	By:
		Authorized Signatory

 

 

[Form of Back of Note]

 

Floating Rate Senior Notes due 2020

 

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, А NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE PARTNERSHIP OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO А SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO HEREIN.]²

 

Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated.

 

1.       Interest. The Partnership promises to pay interest on the principal amount of this Note from June 7, 2017, or from the most recent date to which interest has been paid or duly provided for, quarterly in arrears on March 5, June 5, September 5 and December 5 of each year (each an “Interest Payment Date”), commencing September 5, 2017 and ending on the maturity date. Interest on the Notes will be computed on the basis of a 360-day year consisting of twelve 30-day months.

 

If any Interest Payment Date (other than the Interest Payment Date that is also the maturity date) would otherwise be a day that is not a Business Day, the Interest Payment Date will be postponed to the immediately succeeding day that is a Business Day, except that if such Business Day is in the immediately succeeding calendar month, such Interest Payment Date (other than the Interest Payment Date that is also the maturity date) shall be the immediately preceding Business Day. If the maturity date of the Notes would otherwise be a day that is not a Business Day, the Partnership will pay interest, if any, and principal and premium, if any, on the next immediately succeeding Business Day, and no interest will accrue on the amounts so payable for the period from and after such date to the immediately succeeding Business Day.

 

“Business Day” means any day (1) that is not a Saturday or Sunday and that is not a day on which banking institutions are authorized or obligated by law or executive order to close in The City of New York and, for any place of payment outside of The City of New York, in such place of payment, and (2) that is also a “London business day”, which is a day on which dealings in deposits in U.S. dollars are transacted in the London interbank market.

 

² To be included only if the Note is issued in global form.

 

 

The term “maturity,” when used with respect to a Note, means the date on which the principal of such Note or an installment of principal becomes due and payable as therein provided or as provided in the Indenture, whether at the stated maturity or by declaration of acceleration, call for redemption, repayment or otherwise.

 

The interest rate on the Notes will be reset quarterly on March 5, June 5, September 5 and December 5 of each year, as applicable (each, an “Interest Reset Date”). The Notes will bear interest at a rate of three-month LIBOR (as defined below) for the applicable Interest Period or Initial Interest Period (each as defined below) plus 0.70% per annum (70 basis points); provided, that the rate shall not be less than 0.00%. The interest rate for the Initial Interest Period will be three-month LIBOR, determined as of two London business days prior to the original issue date, plus 0.70% per annum (70 basis points). The “Initial Interest Period” will be the period from and including the original issue date to but excluding the initial Interest Payment Date. Thereafter, each “Interest Period” will be the period from and including an Interest Payment Date to but excluding the immediately succeeding Interest Payment Date; provided, that the final Interest Period for the Notes will be the period from and including the Interest Payment Date immediately preceding the maturity date of such Notes to but excluding the maturity date.

 

If any Interest Reset Date would otherwise be a day that is not a Business Day, the Interest Reset Date will be postponed to the immediately succeeding day that is a Business Day, except that if that Business Day is in the immediately succeeding calendar month, the Interest Reset Date shall be the immediately preceding Business Day.

 

The interest rate in effect on each day will be (i) if that day is an Interest Reset Date, the interest rate determined as of the Interest Determination Date (as defined below) applicable to such Interest Reset Date or (ii) if that day is not an Interest Reset Date, the interest rate determined as of the Interest Determination Date applicable to the most recent Interest Reset Date or the original issue date, as the case may be.

 

The interest rate applicable to each Interest Period commencing on the related Interest Reset Date, or the original issue date in the case of the Initial Interest Period, will be the rate determined as of the applicable Interest Determination Date. The “Interest Determination Date” will be the second London business day immediately preceding the original issue date, in the case of the Initial Interest Period, or thereafter, the second London business day immediately preceding such Interest Reset Date.

 

Wells Fargo Bank, National Association, or its successor appointed by the Partnership, will act as calculation agent. Three-month LIBOR will be determined by the calculation agent as of the applicable Interest Determination Date in accordance with the following provisions:

 

(i) With respect to an Interest Determination Date, LIBOR will be the rate for deposits in U.S. dollars having a maturity of three months commencing on the Interest Reset Date that appears on the designated LIBOR page as of approximately 11:00 a.m., London time, on that Interest Determination Date. If no rate appears, LIBOR, in respect of that Interest Determination Date, will be determined as follows: the Partnership shall request the principal London offices of each of four major reference banks (which may include affiliates of Merrill Lynch, Pierce, Fenner & Smith Incorporated) in the London interbank market, as selected and identified by the Partnership to provide the calculation agent with such bank’s offered quotation (expressed as a percentage per annum) for deposits in U.S. dollars for the period of three months, commencing on the Interest Reset Date, to prime banks in the London interbank market at approximately 11:00 a.m., London time, on that Interest Determination Date and in a principal amount that is representative for a single transaction in U.S. dollars in that market at that time. If at least two quotations are provided, then LIBOR on that Interest Determination Date will be the arithmetic mean of those quotations. If fewer than two quotations are provided, then LIBOR on the Interest Determination Date will be the arithmetic mean of the rates (expressed as a percentage per annum) quoted to the calculation agent at approximately 11:00 a.m., New York City time, on the Interest Determination Date by three major banks (which may include affiliates of Merrill Lynch, Pierce, Fenner & Smith Incorporated) in The City of New York requested, selected and identified by the Partnership for loans in U.S. dollars to leading European banks, having a three-month maturity and in a principal amount that is representative for a single transaction in U.S. dollars in that market at that time; provided, however, that if the banks selected and identified by the Partnership are not providing quotations in the manner described by this sentence, LIBOR for such Interest Determination Date will be LIBOR determined with respect to the immediately preceding Interest Determination Date.

 

 

(ii) The designated LIBOR page is the Reuters screen “LIBOR01”, or any successor service for the purpose of displaying the London interbank rates of major banks for U.S. dollars. The Reuters screen “LIBOR01” is the display designated as the Reuters screen “LIBOR01”, or such other page as may replace the Reuters screen “LIBOR01” on that service or such other service or services as may be nominated for the purpose of displaying London interbank offered rates for U.S. dollar deposits by ICE Benchmark Administration Limited (“IBA”) or its successor or such other entity assuming the responsibility of IBA or its successor in calculating the London Interbank Offered Rate (“LIBOR”) in the event IBA or its successor no longer does so.

 

All percentages resulting from any calculation of any interest rate for the Notes will be rounded, if necessary, to the nearest one hundred thousandth of a percentage point, with five one-millionths of a percentage point rounded upward (e.g., 9.876545% (or .09876545) would be rounded to 9.87655% (or .0987655)), and all dollar amounts will be rounded to the nearest cent, with one-half cent being rounded upward. Any percentage resulting from any calculation of any interest rate for the Notes less than 0.00% will be deemed to be 0.00% (or ..0000).

 

Promptly upon such determination, the calculation agent will notify the Partnership and the Trustee (if the calculation agent is not the Trustee) of the interest rate for the new Interest Period. Upon request of a Holder of the Notes, the calculation agent will provide to such Holder the interest rate in effect on the date of such request and, if determined, the interest rate for the next Interest Period.

 

 

All calculations made by the calculation agent for the purposes of calculating interest on the Notes shall be conclusive and binding on the Holders and the Partnership, absent manifest errors.

 

The interest rate on the Notes will in no event be higher than the maximum rate permitted by New York law as the same may be modified by United States law of general application. Additionally, the interest rate on the Notes will in no event be lower than zero.

 

2.       Method of Payment. The Partnership shall pay interest on the Notes of this series to the Persons who are registered Holders of Notes at the close of business on the February 21, May 21, August 21 and November 21 next preceding the Interest Payment Date (whether or not a Business Day), even if such Notes are canceled after such record date and on or before such Interest Payment Date, except as provided in Section 2.17 of the Base Indenture with respect to Defaulted Interest, and the Partnership shall pay principal (and premium, if any) of the Notes upon surrender thereof to the Trustee or а paying agent. The Notes shall be payable as to principal, premium, if any, and interest at the office or agency of the Trustee maintained for such purpose in New York, New York, or, at the option of the Partnership, payment of interest may be made by check mailed to the Holders at their addresses set forth in the Debt Security Register of Holders, and provided that payment by wire transfer of immediately available funds shall be required with respect to principal of, and interest and premium, if any, on, each Global Security and all other Notes the Holders of which shall have provided wire transfer instructions to the Partnership or the paying agent prior to the applicable record date. Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.

 

3.       Paying Agent and Registrar. Initially, Wells Fargo Bank, National Association, the Trustee under the Indenture, shall act as paying agent and Registrar. The Partnership may change any paying agent or Registrar without notice to any Holder. The Partnership or any of its Subsidiaries may act in any such capacity.

 

4.       Indenture. The Partnership has issued the Notes under an Indenture dated as of June 9, 2011 (the “Original Indenture”), as supplemented by the Third Supplemental Indenture, dated as of June 30, 2014 (the “Third Supplemental Indenture” and, together with the Original Indenture, the “Base Indenture”), and by the Sixth Supplemental Indenture, dated as of June 7, 2017 (the “Supplemental Indenture”), between the Partnership and the Trustee. The Base Indenture, as supplemented by the Supplemental Indenture, is referred to herein as the “Indenture.” The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended. The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act for а statement of such terms. To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling. The Notes of this series are obligations of the Partnership initially in aggregate principal amount of $400,000,000. The Partnership may issue an unlimited aggregate principal amount of Additional Notes under the Indenture. Any such Additional Notes that are actually issued shall be treated as issued and outstanding Notes (and as the same series as the initial Notes, with identical terms other than with respect to the issue date, the date of first payment of interest, if applicable, and the payment of interest accruing prior to the issue date) for all purposes of the Indenture, including waivers, amendments and redemptions.

 

 

5.       Optional Redemption. The Notes are not redeemable prior to maturity.

 

6.       Denominations, Transfer, Exchange. The Notes are in registered form without coupons in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The Partnership, the Registrar and the Trustee may require а Holder, among other things, to furnish appropriate endorsements and transfer documents, and the Partnership may require а Holder to pay any taxes, fees or other governmental charges that may be imposed in relation thereto.

 

7.       Persons Deemed Owners. The registered Holder of а Note shall be treated as its owner for all purposes.

 

8.       Amendment and Supplement. Subject to certain exceptions, the Indenture or the Notes may be amended or supplemented with the consent of the Holders of а majority in aggregate principal amount of the then Outstanding Notes. Without the consent of any Holder of а Note, the Indenture or the Notes may be amended or supplemented for any of the purposes set forth in Section 9.01 of the Base Indenture, including to cure any ambiguity, defect or inconsistency, to provide for the assumption of the Partnership’s obligations to Holders of the Notes in case of а merger or consolidation of the Partnership or the disposition of all or substantially all of the Partnership’s assets, to make any change that does not adversely affect the rights of any Holder of the Notes, to permit the qualification of the Indenture under the Trust Indenture Act, to evidence or provide for the acceptance of appointment under the Indenture of а successor Trustee or to establish the form or terms of any other series of Debt Securities.

 

9.       Defaults and Remedies. Events of Default with respect to the Notes of this series are as follows: (i) default for 30 days in the payment when due of interest on the Notes; (ii) default in payment when due of principal of or premium, if any, on the Notes at maturity or otherwise; (iii) failure by the Partnership for 60 days after notice to comply with any of its other agreements in the Indenture; and (iv) certain events of bankruptcy or insolvency with respect to the Partnership. If any Event of Default occurs and is continuing, either the Trustee or the Holders of at least 25% in aggregate principal amount of the then Outstanding Notes of this series may declare all the Notes of this series to be due and payable. Notwithstanding the foregoing, in the case of an Event of Default arising from certain events of bankruptcy or insolvency with respect to the Partnership, all Outstanding Notes of this series shall ipso facto become due and payable without further action or notice. Holders may not enforce the Indenture or the Notes except as provided in the Indenture. Subject to certain limitations, Holders of а majority in aggregate principal amount of the then Outstanding Notes of this series may direct the Trustee in its exercise of any trust or power. If and so long as the board of directors, the executive committee or а trust committee of directors or Responsible Officers of the Trustee in good faith so determines, the Trustee may withhold from Holders of the Notes notice of any continuing Default (except а Default relating to the payment of principal premium, if any, or interest) if it determines that withholding notice is in their interests. The Holders of а majority in aggregate principal amount of the Notes of this series then Outstanding may on behalf of the Holders of all of the Notes of this series waive any past Default or Event of Default and its consequences, except а continuing Default or Event of Default in the payment of interest on, the principal of, or premium, if any, on the Notes of this series or except as otherwise specified in Section 6.06 of the Base Indenture. The Partnership is required to deliver to the Trustee annually an Officers’ Certificate regarding compliance with the Indenture, and the Partnership is required upon becoming aware of any Default or Event of Default, to deliver to the Trustee an Officers’ Certificate specifying such Default or Event of Default.

 

 

10.       Trustee Dealings with the Partnership. The Trustee, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Partnership or its Affiliates, and may otherwise deal with the Partnership or its Affiliates, as if it were not the Trustee.

 

11.       No Recourse Against Others. The partners, directors, officers, employees, incorporators and members of the Partnership, as such, shall have no liability for any obligations of the Partnership under the Notes or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. By accepting а Note, each Holder shall waive and release all such liability. The waiver and release shall be part of the consideration for the issue of the Notes.

 

12.       Authentication. This Note shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent.

 

13.       Abbreviations. Customary abbreviations may be used in the name of а Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

14.       CUSIP and ISIN Numbers. Pursuant to а recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Partnership has caused CUSIP and corresponding ISIN numbers to be printed on the Notes. No representation is made as to the accuracy of such numbers either as printed on the Notes and reliance may be placed only on the other identification numbers placed thereon.

 

The Partnership shall furnish to any Holder upon written request and without charge copy of each of the Base Indenture and the Supplemental Indenture. Requests may be made to:

 

Spectra Energy Partners, LP
5400 Westheimer Court
Houston, Texas 77056
Attention: Treasurer

 

 

Assignment Form

 

To assign this Note, fill in the form below: (I) or (we) assign and transfer this Note to

 

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 

 

(Print or type assignee’s name, address and zip code)

 

and irrevocably appoint

agent to transfer this Note on the books of the Partnership. The agent may substitute another to act for him.

 

Date __________________

 

	Your Signature:
		(Sign exactly as your name appears on the face of this Note)

 

Signature Guarantee:

(Signature must be guaranteed by а financial institution that is а member of the Securities Transfer Agent Medallion Program (“STAMP”), the Stock Exchange Medallion Program (“SEMP”), the New York Stock Exchange, Inc. Medallion Signature Program (“MSP) or such other signature guarantee program as may be determined by the Registrar in addition to, or in substitution for, STAMP SEMP or MSP, all in accordance with the Securities Exchange Act of 1934 as amended.)

 

 

SCHEDULE OF INCREASES OR DECREASES IN THE GLOBAL NOTE³

 

The original principal amount of this Global Note is $________. The following increases or decreases in this Global Note have been made:

 

Date of Exchange

Amount of decrease in Principal Amount of this Global Note

Amount of increase in Principal Amount of this Global Note

Principal Amount of this Global Note following such decrease (or increase)

Signature of authorized signatory of Trustee or Note Custodian

 

³ To be included only if the Note is issued in global form.