CALGARY, Aug. 2, 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 H
(Series H Shares) (TSX: ENB.PR.H) on September 1, 2018. As a result, subject to
certain conditions, the holders of the Series H Shares have the
right to convert all or part of their Series H Shares on a
one-for-one basis into Cumulative Redeemable Preference Shares,
Series I of Enbridge (Series I Shares) on September 1, 2018. Holders who do not exercise
their right to convert their Series H Shares into Series I Shares
will retain their Series H 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 H Shares outstanding after September 1, 2018, then all remaining Series H
Shares will automatically be converted into Series I Shares on a
one-for-one basis on September 1,
2018; and (ii) alternatively, if Enbridge determines that
there would be less than 1,000,000 Series I Shares outstanding
after September 1, 2018, no Series H
Shares will be converted into Series I Shares. There are currently
14,000,000 Series H Shares outstanding.
With respect to any Series H Shares that remain outstanding
after September 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 H Shares for the five-year period commencing on
September 1, 2018 to, but excluding,
September 1, 2023 will be 4.376
percent, being equal to the five-year Government of Canada bond yield of 2.256% percent determined
as of today plus 2.12 percent in accordance with the terms of the
Series H Shares.
With respect to any Series I Shares that may be issued on
September 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 I
Shares for the three-month floating rate period commencing on
September 1, 2018 to, but excluding,
December 1, 2018 will be 0.88756
percent, based on the annual rate on three month Government of
Canada treasury bills for the most
recent treasury bills auction of 1.44 percent plus 2.12 percent in
accordance with the terms of the Series I Shares (the Floating
Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will
be reset every quarter.
Beneficial holders of Series H Shares who wish to exercise their
right of conversion during the conversion period, which runs from
August 2, 2018 until 5:00 p.m. (EST) on August
17, 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. (the
Company) 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 3.7 million retail
customers in Ontario, Quebec, and New
Brunswick. 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
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.