ENB.PF.V Weak On Good Volume

Enbridge Inc. has announced:

it has closed its previously announced public offering of Cumulative Redeemable Preference shares, Series 5 (Series 5 Preferred Shares) by a syndicate of underwriters led by CIBC, RBC Capital Markets, Scotiabank, and TD Securities Inc. Enbridge issued 8 million Series 5 Preferred Shares for gross proceeds of USD $200 million. The Series 5 Preferred Shares will begin trading on the TSX today under the symbol ENB.PF.V. Proceeds will be used to partially fund capital projects, reduce existing indebtedness and for other general corporate purposes of the Corporation and its affiliates.

ENB.PF.V is a US-Pay FixedReset, 4.40%+282, announced September 19.

The issue traded 694,445 shares today in a wide range of 24.00-80, closing at 24.26-44, 4×12. It appears that the market agrees with my announcement-day assessment that the new issue was grossly overpriced!

ENB.PF.V will not be tracked by HIMIPref™, as it is US-Pay. There are insufficient USD denominated issues to make it possible to construct a continually optimized portfolio from a stable universe.

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