CALGARY, Nov. 1, 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 9
(Series 9 Shares) (TSX: ENB.PF.A) on December 1, 2019. As a result, subject to certain
conditions, the holders of the Series 9 Shares have the right to
convert all or part of their Series 9 Shares on a one-for-one basis
into Cumulative Redeemable Preference Shares, Series 10 of Enbridge
(Series 10 Shares) on December 1,
2019. Holders who do not exercise their right to convert
their Series 9 Shares into Series 10 Shares will retain their
Series 9 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 9 Shares outstanding after December 1, 2019, then all remaining Series 9
Shares will automatically be converted into Series 10 Shares on a
one-for-one basis on December 1,
2019; and (ii) alternatively, if Enbridge determines that
there would be less than 1,000,000 Series 10 Shares outstanding
after December 1, 2019, no Series 9
Shares will be converted into Series 10 Shares. There are currently
11,000,000 Series 9 Shares outstanding.
With respect to any Series 9 Shares that remain outstanding
after December 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 9 Shares for the five-year period commencing on
December 1, 2019 to, but excluding,
December 1, 2024 will be 4.097
percent, being equal to the five-year Government of Canada bond yield of 1.437 percent determined
as of today plus 2.66 percent in accordance with the terms of the
Series 9 Shares.
With respect to any Series 10 Shares that may be issued on
December 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
10 Shares for the three-month floating rate period commencing on
December 1, 2019 to, but excluding,
March 1, 2020 will be 1.07704
percent, based on the annual rate on three month Government of
Canada treasury bills for the most
recent treasury bills auction of 1.66 percent plus 2.66 percent in
accordance with the terms of the Series 10 Shares (the Floating
Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will
be reset every quarter.
Beneficial holders of Series 9 Shares who wish to exercise their
right of conversion during the conversion period, which runs from
November 1, 2019 until 5:00 p.m. (EST) on November 18, 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 9 Shares into Series 10 Shares on
December 1, 2019, the annual dividend
rate that will apply to any outstanding Series 9 Shares on
December 1, 2019, the quarterly
dividend rate that will apply to any Series 10 Shares on
December 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 9 Shares will
exercise their right to convert their Series 9 Shares into Series
10 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.; and Utilities and Power
Operations, which serves approximately 3.7 million retail customers
in Ontario and Quebec, and generates approximately 1,600 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
|
Investment
Community
|
Jesse
Semko
|
Jonathan
Morgan
|
Toll Free: (888)
992-0997
|
Toll Free: (800)
481-2804
|
Email:
media@enbridge.com
|
Email:
investor.relations@enbridge.com
|
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SOURCE Enbridge Inc.