CALGARY, May 2, 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 R
(Series R Shares) (TSX: ENB.PR.T) on June 1,
2019. As a result, subject to certain conditions, the
holders of the Series R Shares have the right to convert all or
part of their Series R Shares on a one-for-one basis into
Cumulative Redeemable Preference Shares, Series S of Enbridge
(Series S Shares) on June 1, 2019.
Holders who do not exercise their right to convert their Series R
Shares into Series S Shares will retain their Series R 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 R Shares outstanding after June 1, 2019, then all remaining Series R Shares
will automatically be converted into Series S Shares on a
one-for-one basis on June 1, 2019;
and (ii) alternatively, if Enbridge determines that there would be
less than 1,000,000 Series S Shares outstanding after June 1, 2019, no Series R Shares will be
converted into Series S Shares. There are currently 16,000,000
Series R Shares outstanding.
With respect to any Series R Shares that remain outstanding
after June 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 R
Shares for the five-year period commencing on June 1, 2019 to, but excluding, June 1, 2024 will be 4.073 percent, being equal
to the five-year Government of Canada bond yield of 1.573 percent determined
as of today plus 2.50 percent in accordance with the terms of the
Series R Shares.
With respect to any Series S Shares that may be issued on
June 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 S Shares for
the three-month floating rate period commencing on June 1, 2019 to, but excluding, September 1, 2019 will be 1.05107 percent, based
on the annual rate on three month Government of Canada treasury bills for the most recent
treasury bills auction of 1.67 percent plus 2.50 percent in
accordance with the terms of the Series S Shares (the Floating
Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will
be reset every quarter.
Beneficial holders of Series R Shares who wish to exercise their
right of conversion during the conversion period, which runs from
May 2, 2019 until 5:00 p.m. (EST) on May 17,
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.
Forward-Looking Statements
Forward-looking information, or forward-looking statements,
have been included in this news release to provide information
about Enbridge, including statements with respect to the conversion
of all or part of the Series R Shares into Series S Shares on
June 1, 2019, the annual dividend
rate that will apply to any outstanding Series R Shares on
June 1, 2019, the quarterly dividend
rate that will apply to any Series S Shares on June 1, 2019, and the declaration of dividends by
the Board of Directors of Enbridge. This information may not be
appropriate for other purposes. Although Enbridge believes these
forward-looking statements are reasonable based on the information
available on the date such statements are made and on processes
used to prepare the information, such statements are not guarantees
of future events and readers are cautioned against placing undue
reliance on forward-looking statements. By their nature, these
statements involve a variety of assumptions, known and unknown
risks and uncertainties and other factors, which may cause actual
events to differ materially from those expressed or implied by such
statements. Material assumptions include assumptions about whether
holders of Series R Shares will exercise their right to convert
their Series R Shares into Series S Shares.
Enbridge's forward-looking statements are subject to risks
and uncertainties, including, but not limited to those risks and
uncertainties discussed in this news release and in the Company's
other filings with Canadian and United
States securities regulators. The impact of any one risk,
uncertainty or factor on a particular forward-looking statement is
not determinable with certainty as these are interdependent and
Enbridge's future course of action depends on management's
assessment of all information available at the relevant time.
Except to the extent required by applicable law, Enbridge assumes
no obligation to publicly update or revise any forward-looking
statements made in this news release or otherwise, whether as a
result of new information, future events or otherwise. All
subsequent forward-looking statements, whether written or oral,
attributable to Enbridge or persons acting on its behalf, are
expressly qualified in their entirety by these cautionary
statements.
About Enbridge Inc.
Enbridge Inc. 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 in excess of 3 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 18% 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's 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.