CALGARY, AB, August 4, 2020 /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 15
(Series 15 Shares) (TSX: ENB.PF.G) on September 1, 2020. As a result, subject to
certain conditions, the holders of the Series 15 Shares have the
right to convert all or part of their Series 15 Shares on a
one-for-one basis into Cumulative Redeemable Preference Shares,
Series 16 of Enbridge (Series 16 Shares) on September 1, 2020. Holders who do not exercise
their right to convert their Series 15 Shares into Series 16 Shares
will retain their Series 15 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 15 Shares outstanding after September 1, 2020, then all remaining Series 15
Shares will automatically be converted into Series 16 Shares on a
one-for-one basis on September 1,
2020; and (ii) alternatively, if Enbridge determines that
there would be less than 1,000,000 Series 16 Shares outstanding
after September 1, 2020, no Series 15
Shares will be converted into Series 16 Shares. There are currently
11,000,000 Series 15 Shares outstanding.
With respect to any Series 15 Shares that remain outstanding
after September 1, 2020, 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 15 Shares for the five-year period commencing on
September 1, 2020 to, but excluding,
September 1, 2025 will be 2.983
percent, being equal to the five-year Government of Canada bond yield of 0.303 percent determined
as of today plus 2.68 percent in accordance with the terms of the
Series 15 Shares.
With respect to any Series 16 Shares that may be issued on
September 1, 2020, 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
16 Shares for the three-month floating rate period commencing
on September 1, 2020 to,
but excluding, December 1, 2020 will
be 0.70861 percent, based on the annual rate on three month
Government of Canada treasury
bills for the most recent treasury bills auction of 0.17 percent
plus 2.68 percent in accordance with the terms of the Series 16
Shares (the Floating Quarterly Dividend Rate). The Floating
Quarterly Dividend Rate will be reset every quarter.
Beneficial holders of Series 15 Shares who wish to exercise
their right of conversion during the conversion period, which runs
from August 2, 2020 until
5:00 p.m. (EST) on August 17, 2020, 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 15 Shares into Series 16 Shares on
September 1, 2020, the annual
dividend rate that will apply to any outstanding Series 15 Shares
on September 1, 2020, the quarterly
dividend rate that will apply to any Series 16 Shares on
September 1,2020, 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 15 Shares will
exercise their right to convert their Series 15 Shares into Series
16 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 a
leading North American energy infrastructure company. We safely and
reliably deliver the energy people need and want to fuel quality of
life. Our core businesses include Liquids Pipelines, which
transports approximately 25 percent of the crude oil produced in
North America; Gas Transmission
and Midstream, which transports approximately 20 percent of the
natural gas consumed in the U.S.; Gas Distribution and Storage,
which serves approximately 3.8 million retail customers in
Ontario and Quebec; and Renewable Power Generation, which
generates approximately 1,750 MW of net renewable power in
North America and Europe. The Company's common shares trade on
the Toronto and New York stock exchanges under the symbol ENB.
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
Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
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SOURCE Enbridge Inc.