CALGARY,
AB, May 2, 2022 /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 B
(Series B Shares) (TSX: ENB.PR.B) or its right to redeem its
currently outstanding Cumulative Redeemable Preference Shares,
Series C (Series C Shares) (TSX: ENB.PR.C) on June 1, 2022. As a result, subject to certain
conditions, the holders of the Series B Shares have the right to
convert all or part of their Series B Shares on a one-for-one basis
into Series C Shares on June 1, 2022
and the holders of the Series C Shares have the right to convert
all or part of their Series C Shares on a one-for-one bases into
Series B Shares on June 1, 2022.
Holders who do not exercise their right to convert their Series B
Shares into Series C Shares will retain their Series B Shares and
holders who do not exercise their right to convert their Series C
Shares into Series B Shares will retain their Series C Shares.
The foregoing conversion rights are subject to the conditions
that: (i) if Enbridge, after taking into account all Series B
Shares and all Series C Shares tendered for conversion, determines
that there would be less than 1,000,000 Series B Shares outstanding
after June 1, 2022, then all
remaining Series B Shares will automatically be converted into
Series C Shares on a one-for-one basis on June 1, 2022 and no Series C Shares will be
converted into Series B Shares; and (ii) alternatively, if
Enbridge, after taking into account all Series B Shares and all
Series C Shares tendered for conversion, determines that there
would be less than 1,000,000 Series C Shares outstanding after
June 1, 2022, then all remaining
Series C Shares will automatically be converted into Series B
Shares on a one-for-one basis on June 1,
2022 and no Series B Shares will be converted into Series C
Shares. There are currently 18,269,812 Series B Shares outstanding
and 1,730,188 Series C Shares outstanding.
With respect to any Series B Shares that remain outstanding
after June 1, 2022, including any
Series B Shares issued pursuant to the conversion of the Class C
Shares, 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 B Shares for the five-year period
commencing on June 1, 2022 to, but
excluding, June 1, 2027 will be 5.202
percent, being equal to the five-year Government of Canada bond yield of 2.802 percent determined
as of today plus 2.40 percent in accordance with the terms of the
Series B Shares.
With respect to any Class C Shares that remain outstanding after
June 1, 2022, including any Series C
Shares issued pursuant to the conversion of the Class B Shares,
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 C Shares for the three-month floating rate period commencing
on June 1, 2022 to, but excluding,
September 1, 2022 will be 0.95277
percent, based on the annual rate on three month Government of
Canada treasury bills for the most
recent treasury bills auction of 1.38 percent plus 2.40 percent in
accordance with the terms of the Series C Shares (the Floating
Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will
be reset every quarter.
Beneficial holders of Series B Shares and Series C Shares who
wish to exercise their respective rights of conversion during the
conversion periods applicable to the Series B Shares and the Series
C Shares, each of which runs from May 2,
2022, until 5:00 p.m. (EST) on
May 17, 2022, 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 B Shares into Series C Shares or the
conversion of all or part of the Series C Shares into Series B
Shares on June 1, 2022, the annual
dividend rate that will apply to any outstanding Series B Shares on
June 1, 2022, the quarterly dividend
rate that will apply to any outstanding Series C Shares on
June 1, 2022, 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 B Shares will exercise
their right to convert their Series B Shares into Series C Shares
and whether the holders of the Series C Shares will exercise their
right to convert their Series C Shares into Series B
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 30
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 3.9 million retail customers in Ontario and Quebec; and Renewable Power Generation, which
owns approximately 1,766 MW (net) in renewable power generation
capacity 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
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
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SOURCE Enbridge Inc.