CALGARY, Jan. 30, 2019 /CNW/ - Enbridge Inc. (TSX:
ENB) (NYSE: ENB) (Enbridge or the Company) announced today that it
does not intend to exercise its right to redeem its currently
outstanding Cumulative Redeemable Preference Shares, Series P
(Series P Shares) (TSX: ENB.PR.P) on March
1, 2019. As a result, subject to certain conditions, the
holders of the Series P Shares have the right to convert all or
part of their Series P Shares on a one-for-one basis into
Cumulative Redeemable Preference Shares, Series Q of Enbridge
(Series Q Shares) on March 1, 2019.
Holders who do not exercise their right to convert their Series P
Shares into Series Q Shares will retain their Series P Shares.
The foregoing conversion right is subject to the conditions
that: (i) if Enbridge determines that there would be less than
1,000,000 Series P Shares outstanding after March 1, 2019, then all remaining Series P Shares
will automatically be converted into Series Q Shares on a
one-for-one basis on March 1, 2019;
and (ii) alternatively, if Enbridge determines that there would be
less than 1,000,000 Series Q Shares outstanding after March 1, 2019, no Series P Shares will be
converted into Series Q Shares. There are currently 16,000,000
Series P Shares outstanding.
With respect to any Series P Shares that remain outstanding
after March 1, 2019, holders thereof
will be entitled to receive quarterly fixed cumulative preferential
cash dividends, as and when declared by the Board of Directors of
Enbridge. The new annual dividend rate applicable to the Series P
Shares for the five-year period commencing on March 1, 2019 to, but excluding, March 1, 2024 will be 4.379 percent, being equal
to the five-year Government of Canada bond yield of 1.879 percent determined
as of today plus 2.50 percent in accordance with the terms of the
Series P Shares.
With respect to any Series Q Shares that may be issued on
March 1, 2019, holders thereof will
be entitled to receive quarterly floating rate cumulative
preferential cash dividends, as and when declared by the Board of
Directors of Enbridge. The dividend rate applicable to the Series Q
Shares for the three-month floating rate period commencing on
March 1, 2019 to, but excluding,
June 1, 2019 will be 1.04099 percent,
based on the annual rate on three month Government of Canada treasury bills for the most recent
treasury bills auction of 1.63 percent plus 2.50 percent in
accordance with the terms of the Series Q Shares (the Floating
Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will
be reset every quarter.
Beneficial holders of Series P Shares who wish to exercise their
right of conversion during the conversion period, which runs from
January 30, 2019 until 5:00 p.m. (EST) on February 14, 2019, should communicate as soon as
possible with their broker or other intermediary for more
information. It is recommended that this be done well in advance of
the deadline in order to provide the broker or other intermediary
time to complete the necessary steps. Any notices received after
this deadline will not be valid.
About Enbridge Inc.
Enbridge is
North America's premier energy
infrastructure company with strategic business platforms that
include an extensive network of crude oil, liquids and natural gas
pipelines, regulated natural gas distribution utilities and
renewable power generation. The Company safely delivers an average
of 2.9 million barrels of crude oil each day through its Mainline
and Express Pipeline; accounts for approximately 62% of U.S.-bound
Canadian crude oil exports; and moves approximately 22% of all
natural gas consumed in the U.S., serving key supply basins and
demand markets. The Company's regulated utilities serve
approximately 3.7 million retail customers in Ontario, Quebec, and New
Brunswick. Enbridge also has interests in more than 1,700 MW
of net renewable generating capacity in North America and Europe. The Company has ranked on the Global
100 Most Sustainable Corporations index for the past nine years;
its common shares trade on the Toronto and New
York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's
quality of life. For more information, visit
www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan
Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
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SOURCE Enbridge Inc.