CALGARY, May 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 13 (Series 13 Shares) (TSX: ENB.PF.E) on June 1, 2020. As a result, subject to certain
conditions, the holders of the Series 13 Shares have the right to
convert all or part of their Series 13 Shares on a one-for-one
basis into Cumulative Redeemable Preference Shares, Series 14 of
Enbridge (Series 14 Shares) on June 1,
2020. Holders who do not exercise their right to convert
their Series 13 Shares into Series 14 Shares will retain their
Series 13 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 13 Shares outstanding after June 1, 2020, then all remaining Series 13 Shares
will automatically be converted into Series 14 Shares on a
one-for-one basis on June 1, 2020;
and (ii) alternatively, if Enbridge determines that there would be
less than 1,000,000 Series 14 Shares outstanding after June 1, 2020, no Series 13 Shares will be
converted into Series 14 Shares. There are currently 14,000,000
Series 13 Shares outstanding.
With respect to any Series 13 Shares that remain outstanding
after June 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 13
Shares for the five-year period commencing on June 1, 2020 to, but excluding, June 1, 2025 will be 3.043 percent, being equal
to the five-year Government of Canada bond yield of 0.383 percent determined
as of today plus 2.66 percent in accordance with the terms of the
Series 13 Shares.
With respect to any Series 14 Shares that may be issued on
June 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 14 Shares for
the three-month floating rate period commencing on June 1, 2020 to, but excluding, September 1, 2020 will be 0.73650 percent, based
on the annual rate on three month Government of Canada treasury bills for the most recent
treasury bills auction of 0.27 percent plus 2.66 percent in
accordance with the terms of the Series 14 Shares (the Floating
Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will
be reset every quarter.
Beneficial holders of Series 13 Shares who wish to exercise
their right of conversion during the conversion period, which runs
from May 1, 2020 until 5:00 p.m. (EST) on May 19,
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 13 Shares into Series 14 Shares on
June 1, 2020, the annual dividend
rate that will apply to any outstanding Series 13 Shares on
June 1, 2020, the quarterly dividend
rate that will apply to any Series 14 Shares on June 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 13 Shares will exercise their right to convert
their Series 13 Shares into Series 14 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.