CALGARY, Jan. 30, 2018 /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 D
(Series D Shares) (TSX: ENB.PR.D) on March
1, 2018. As a result, subject to certain conditions, the
holders of the Series D Shares have the right to convert all or
part of their Series D Shares on a one-for-one basis into
Cumulative Redeemable Preference Shares, Series E of Enbridge
(Series E Shares) on March 1, 2018.
Holders who do not exercise their right to convert their Series D
Shares into Series E Shares will retain their Series D 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 D Shares outstanding after March 1, 2018, then all remaining Series D Shares
will automatically be converted into Series E Shares on a
one-for-one basis on March 1, 2018;
and (ii) alternatively, if Enbridge determines that there would be
less than 1,000,000 Series E Shares outstanding after March 1, 2018, no Series D Shares will be
converted into Series E Shares. There are currently 18,000,000
Series D Shares outstanding.
With respect to any Series D Shares that remain outstanding
after March 1, 2018, 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 D
Shares for the five-year period commencing on March 1, 2018 to, but excluding, March 1, 2023 will be 4.46 percent, being equal
to the five-year Government of Canada bond yield of 2.09 percent determined
as of today plus 2.37 percent in accordance with the terms of the
Series D Shares.
With respect to any Series E Shares that may be issued on
March 1, 2018, 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 E
Shares for the three-month floating rate period commencing on
March 1, 2018 to, but excluding,
June 1, 2018 will be 0.89984 percent,
based on the annual rate on three month Government of Canada treasury bills for the most recent
treasury bills auction of 1.20 percent plus 2.37 percent in
accordance with the terms of the Series E Shares (the Floating
Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will
be reset every quarter.
Beneficial holders of Series D Shares who wish to exercise their
right of conversion during the conversion period, which runs from
January 30, 2018 until 5:00 p.m. (EST) on February 14, 2018, 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 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 an average of 2.8 million barrels of crude oil each
day through its Mainline and Express Pipeline; accounts for
approximately 65% of U.S.-bound Canadian crude oil exports; and
moves approximately 20% of all natural gas consumed in the U.S.,
serving key supply basins and demand markets. The Company's
regulated utilities serve approximately 3.6 million retail
customers in Ontario, Quebec, New
Brunswick and New York
State. Enbridge also has interests in more than 2,500 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
Suzanne Wilton
Toll Free: (888) 992-0997
Email: suzanne.wilton@enbridge.com
Investment Community
Jonathan
Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
SOURCE Enbridge Inc.