PrefBlog

Partners Value Split Corp. has announced (although not yet on their website [update: here it is]):

that it has entered into an agreement to sell 8,000,000 Class AA Preferred Shares, Series 6 (the “Series 6 Preferred Shares”) to a syndicate of underwriters led by Scotiabank, CIBC, RBC Capital Markets, and TD Securities Inc. on a bought deal basis. The Series 6 Preferred Shares will be issued at a price of $25.00 per share, for gross proceeds of $200,000,000. The Series 6 Preferred Shares will carry a fixed coupon of 4.50% and will have a final maturity of October 8, 2021. The Series 6 Preferred Shares have a provisional rating of Pfd-2 (low) from DBRS. The net proceeds of the offering will be used to redeem the Company’s outstanding Class AA Preferred Shares, Series 4 and to pay a special cash dividend to holders of the Company’s capital shares.

The Company has granted the underwriters an option, exercisable at any time, not later than 30 days after closing, to purchase up to an additional 1,200,000 Series 6 Preferred Shares, which, if exercised, would increase the gross offering size to $230,000,000. Closing of the offering is expected to occur on or about July 4, 2014.

The Company owns a portfolio consisting of 53,160,644 Class A Limited Voting Shares of Brookfield Asset Management Inc. (the “Brookfield Shares”), which is expected to yield quarterly dividends that are sufficient to fund quarterly fixed cumulative preferential dividends for the holders of the Company’s preferred shares and to enable the holders of the Company’s capital shares to participate in any capital appreciation of the Brookfield Shares. Brookfield Asset Management Inc. (“Brookfield”) is a global alternative asset manager with over $175 billion in assets under management. Brookfield has over a 100-year history of owning and operating assets with a focus on property, renewable energy, infrastructure and private equity and is co-listed on the New York and Toronto Stock Exchanges under the symbols BAM and BAM.A, respectively, and on NYSE Euronext under the symbol BAMA.

This issue is more-or-less in-line with BNA’s other issues at today’s close:

Update, 2014-6-19: Rated Pfd-2(low) by DBRS.

Element Financial Corporation has announced that it (emphasis added):

has entered into an agreement to sell, on a bought deal basis, 4,000,000 Series E Preferred Shares at a price of $25.00 per Series E Preferred Share for gross proceeds of $100 million (the “Preferred Share Offering”, and with the Subscription Receipt Offering and the Debenture Offering, the “Offerings”). Holders of the Series E Preferred Shares will be entitled, if, as and when declared by the Board of Directors of Element, to receive a cumulative quarterly fixed dividend for the initial five-year period ending September 30, 2019 of 6.4% per annum. Thereafter, the dividend rate will reset every five years to an annual dividend rate equal to the 5-Year Government of Canada Bond Yield as quoted on Bloomberg on the 30th day prior to the first day of the relevant subsequent five year fixed rate period plus 4.72%.

Holders of the Series E Preferred Shares will have the right to convert their shares into cumulative floating rate preferred shares, Series F of Element (“Series F Preferred Shares”), subject to certain conditions and Element’s right to redeem the Series E Preferred Shares, on September 30, 2019 and on September 30 every five years thereafter. Holders of the Series F Preferred Shares will be entitled to receive a quarterly floating rate dividend, if, as and when declared by the Board of Directors of Element, equal to the then current three-month Government of Canada Treasury Bill plus 4.72%. Holders of the Series F Preferred Shares may convert their Series F Preferred Shares into Series E Preferred Shares, subject to certain conditions and Element’s right to redeem the Series F Preferred Shares, on September 30, 2024 and on September 30 every five years thereafter. The Series E Preferred Shares will not be rated. If the Acquisition does not proceed, the net proceeds from the Preferred Share Offering will be used by Element for general corporate purposes.

The Preferred Share Offering is being led by BMO Nesbitt Burns Inc. and includes CIBC World Markets Inc., GMP Securities L.P., Barclays Capital Canada Inc., National Bank Financial Inc., TD Securities Inc., Credit Suisse Securities (Canada) Inc., RBC Dominion Securities Inc., Scotia Capital Inc., Cormark Securities Inc. and Manulife Securities Inc. (collectively, the “Preferred Share Underwriters”).

This is part of a major capital-raising exercise:

• Bought deal financing of $750 million subscription receipts, $250 million extendible convertible debentures and $100 million cumulative 5-year rate reset preferred shares
• Amended and restated revolving credit facility for aggregate commitment of $1 billion
• US$1.36 billion bridge financing commitment obtained

… which is in turn due to a major acquisition announcement:

Element Financial Corporation (TSX:EFN) (“Element” or the “Company”), one of North America’s leading equipment finance companies, today announced that it has entered into a definitive agreement to acquire the assets and operations of PHH Arval, PHH Corporation’s North American fleet management services business (the “Transaction”). Under the terms of the agreement, Element will pay approximately US$1.4 billion for the business in an all-cash transaction representing a purchase price multiple of 1.56 times the adjusted book value of the acquired business. At March 31, 2014, PHH Arval reported more than US$4.6 billion in total assets, of which US$4.0 billion represented net investment in fleet leases, and generated annual origination volumes of approximately US$1.7 billion during 2013.
…
The Transaction, which is expected to close on or before July 31, 2014, is subject to customary closing conditions, including regulatory approvals, and post-closing purchase price adjustments.

This issue joins EFN’s other FixedResets outstanding, EFN.PR.A, FixedReset, 6.60%+471 and EFN.PR.C, FixedReset, 6.50%+481.

As with the two previous issues, this issue will not be tracked by HIMIPref™ on the grounds that it is not rated. This is not because I can’t come to my own views regarding credit quality, or because I worship the Credit Rating Agencies, but because I feel the threat of an imminent downgrade from a major agency does an excellent job of focussing the minds of the directors and management that they have a problem that really should be addressed. A ‘Review-Negative’ by Hymas Investment Management does not have quite the same effect.

Canadian Imperial Bank of Commerce has announced:

that it had entered into an agreement with a group of underwriters led by CIBC World Markets Inc. for an issue of 10 million Basel III-compliant non-cumulative Rate Reset Class A Preferred Shares, Series 39 (the “Series 39 Shares”) priced at $25.00 per Series 39 Share to raise gross proceeds of $250 million.

CIBC has granted the underwriters an option to purchase up to an additional 2 million Series 39 Shares at the same offering price, exercisable at any time up to two days prior to closing. Should the underwriters’ option be fully exercised, the total gross proceeds of the financing will be $300 million.

The Series 39 Shares will yield 3.90% per annum, payable quarterly, as and when declared by the Board of Directors of CIBC, for an initial period ending July 31, 2019. On July 31, 2019, and on July 31 every five years thereafter, the dividend rate will reset to be equal to the then current five-year Government of Canada bond yield plus 2.32%.

Subject to regulatory approval and certain provisions of the Series 39 Shares, on July 31, 2019, and on July 31 every five years thereafter, CIBC may, at its option, redeem all or any part of the then outstanding Series 39 Shares at par.

Subject to the right of redemption, holders of the Series 39 Shares will have the right to convert their shares into non-cumulative Floating Rate Class A Preferred Shares, Series 40 (the “Series 40 Shares”), subject to certain conditions, on July 31, 2019 and on July 31 every five years thereafter. Holders of the Series 40 Shares will be entitled to receive a quarterly floating rate dividend, as and when declared by the Board of Directors of CIBC, equal to the three-month Government of Canada Treasury Bill yield plus 2.32%.

Holders of the Series 40 Shares may convert their Series 40 Shares into Series 39 Shares, subject to certain conditions, on July 31, 2024 and on July 31 every five years thereafter.

The expected closing date is June 11, 2014. CIBC will make an application to list the Series 39 Shares as of the closing date on the Toronto Stock Exchange. The net proceeds of this offering will be used for general purposes of CIBC.

They later announced:

that as a result of strong investor demand for its previously announced domestic public offering of non-cumulative Rate Reset Class A Preferred Shares, Series 39, the size of the offering has been increased to 16 million shares. The gross proceeds of the offering will now be $400 million. The offering will be underwritten by a syndicate led by CIBC World Markets Inc. The expected closing date is June 11, 2014.

The net proceeds from this transaction will be used for general purposes of CIBC.

Since CM.PR.K and CM.PR.M are being redeemed and the only other extant CM issues CM.PR.D, CM.PR.E and CM.PR.G are NVCC-Compliant through the back door, this means that CM will be the first bank to have all its preferred issues NVCC compliant.

Update: Provisionally rated Pfd-2 [Stable] by DBRS.

Rated P-2(low) by S&P:

The ‘BBB-‘ issue rating stands three notches below the ‘a-‘ stand-alone credit profile (SACP) assigned to CIBC, incorporating:

• •A deduction of two notches, the minimum downward notching from the SACP under our criteria for a bank hybrid capital instrument; and
• •The deduction of an additional notch to reflect that the preferred shares feature a contingent conversion trigger provision. Should a trigger event occur (as defined by The Office of the Superintendent of Financial Institutions’ [OSFI] guideline for Capital Adequacy Requirements, Chapter 2), each outstanding preferred share will automatically and immediately be converted, without the holder’s consent, into a number of fully paid and freely tradable common shares of the bank determined in accordance with a conversion formula.

Emera Incorporated has announced:

that it will issue eight million Cumulative Rate Reset First Preferred Shares, Series F (the “Series F Preferred Shares”) at a price of $25.00 per share and at an initial annual dividend rate of 4.25 per cent, for aggregate gross proceeds of $200 million on a bought deal basis to a syndicate of underwriters in Canada led by Scotiabank.

The holders of the Series F Preferred Shares will be entitled to receive fixed cumulative preferential cash dividends at an annual rate of $1.0625 per share, payable quarterly, as and when declared by the board of directors of Emera, yielding 4.25 per cent per annum, for the initial period ending on February 15, 2020. The first of such dividends, if declared, shall be payable on August 15, 2014, and shall be $0.1950 per Series F Preferred Share, based on the anticipated closing of the offering on June 9, 2014. The dividend rate will be reset on February 15, 2020 and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield plus 2.63 per cent. The Series F Preferred Shares are redeemable by Emera, at its option, on February 15, 2020 and on February 15 of every fifth year thereafter.

The holders of Series F Preferred Shares will have the right to convert their shares into Cumulative Floating Rate First Preferred Shares, Series G (the “Series G Preferred Shares”), subject to certain conditions, on February 15, 2020 and on February 15 of every fifth year thereafter. The holders of the Series G Preferred Shares will be entitled to receive quarterly floating rate cumulative preferential cash dividends, as and when declared by the board of directors of Emera, at a rate equal to the sum of the then 90-day Government of Canada treasury bill rate plus 2.63 per cent.

The offering is subject to the receipt of all necessary regulatory and stock exchange approvals. The net proceeds of the offering will be used for general corporate purposes.

This joins their two extant FixedReset issues, EMA.PR.A, 4.40%+184, resets 2015-8-15, and EMA.PR.C, 4.10%+265, resets 2018-8-15. Both issues got hammered today … EMA.PR.A closed at 21.31-49, down 34 cents; EMA.PR.C closed at 24.81-95, down 29 cents.

Their PerpetualDiscount, EMA.PR.E, was yielding 5.11% at the closing bid yesterday, so the Break Even Rate Shock on this issue is 1.00%, a very low figure by recent standards. FixedResets haven’t been fashionable lately!

Bank of Montreal has announced:

a Basel III-compliant domestic public offering of $250 million of Non-Cumulative 5-Year Rate Reset Class B Preferred Shares Series 29 (the “Preferred Shares Series 29”). The offering will be underwritten on a bought-deal basis by a syndicate led by BMO Capital Markets. The Bank has granted to the underwriters an option to purchase up to an additional $50 million of the Preferred Shares Series 29 exercisable at any time up to two days before closing.

The Preferred Shares Series 29 will be issued to the public at a price of $25.00 per share. Holders will be entitled to receive non-cumulative preferential fixed quarterly dividends for the initial period ending August 25, 2019, as and when declared by the board of directors of the Bank, payable in the amount of $0.24375 per share, to yield 3.90 per cent annually.

Subject to regulatory approval, on or after August 25, 2019, the Bank may redeem the Preferred Shares Series 29 in whole or in part at par. Thereafter, the dividend rate will reset every five years to be equal to the 5-Year Government of Canada Bond Yield plus 2.24 per cent. Subject to certain conditions, holders may elect to convert any or all of their Preferred Shares Series 29 into an equal number of Non-Cumulative Floating Rate Class B Preferred Shares Series 30 (“Preferred Shares Series 30”) on August 25, 2019, and on August 25 of every fifth year thereafter. Holders of the Preferred Shares Series 30 will be entitled to receive non-cumulative preferential floating rate quarterly dividends, as and when declared by the board of directors of the Bank, equal to the then 3-month Government of Canada Treasury Bill yield plus 2.24 per cent. Subject to certain conditions, holders may elect to convert any or all of their Preferred Shares Series 30 into an equal number of Preferred Shares Series 29 on August 25, 2024, and on August 25 of every fifth year thereafter.

The anticipated closing date is June 6, 2014. The net proceeds from the offering will be used by the Bank for general corporate purposes.

They later announced:

that as a result of strong investor demand for its previously announced domestic public offering of $250 million of Non-Cumulative 5-year Rate Reset Class B Preferred Shares Series 29, the size of the offering has been increased to $400 million. As announced earlier today, the offering will be underwritten on a bought deal basis by a syndicate led by BMO Capital Markets.

The Implied Volatility calculation yields interesting results:

Click for Big

So the Implied Volatility is at its maximum reasonable value of 40%; this is far too low for NVCC-non-compliant issues and far too high for compliant ones, but the fit is reasonable anyway. Of interest is the fact that the two NVCC-compliant issues (BMO is the first to have two!) are well above the fitted line, which is as it should be.

Brookfield Asset Management Inc. has announced:

that it has agreed to issue 8,000,000 Class A Preferred Shares, Series 40 on a bought deal basis to a syndicate of underwriters led by RBC Capital Markets, CIBC, Scotiabank and TD Securities Inc. for distribution to the public. The Preferred Shares, Series 40 will be issued at a price of C$25.00 per share, for gross proceeds of C$200,000,000. Holders of the Preferred Shares, Series 40 will be entitled to receive a cumulative quarterly fixed dividend yielding 4.50% annually for the initial period ending September 30, 2019. Thereafter, the dividend rate will be reset every five years at a rate equal to the 5-year Government of Canada bond yield plus 2.86%.

Brookfield has granted the underwriters an option, exercisable until 48 hours prior to closing, to purchase up to an additional 2,000,000 Preferred Shares, Series 40 which, if exercised, would increase the gross offering size to C$250,000,000. The Preferred Shares, Series 40 will be offered in all provinces of Canada by way of a supplement to Brookfield’s existing short form base shelf prospectus. The Preferred Shares, Series 40 may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements under the U.S. Securities Act.

Brookfield also announced that it intends to redeem all of its outstanding Class A Preferred Shares, Series 22 (TSX:BAM.PR.P) for cash on September 30, 2014. The redemption price for each Preferred Share, Series 22 will be C$25.00. Holders of Preferred Shares, Series 22 will separately receive all accrued and unpaid dividends outstanding on the redemption date.

Brookfield intends to use the net proceeds of the issue of Preferred Shares, Series 40 to partially fund the redemption of its Preferred Shares, Series 22. The offering of Preferred Shares, Series 40 is expected to close on or about June 5, 2014.

The redemption of BAM.PR.P has been given its own post.

The issue looks fairly priced, with a small but reasonable new issue concession. Implied Volatility Theory suggests it is cheap relative to the lower-spread BAM issues, as the theoretical curve should flatten as implied volatility declines from its very high level of 40%.

BAM PerpetualDiscounts (BAM.PR.M, BAM.PR.N, BAM.PF.C, BAM.PF.D) were yielding within a tight range of 5.50-5.55% at the close yesterday, so the Break Even Rate Shock on this new issue is about 1.4%, a little less than we have seen on several recent new issues.

The Toronto-Dominion Bank has announced:

an inaugural Basel III-compliant domestic public offering of Non-Cumulative 5-Year Rate Reset Preferred Shares, Series 1 (the “Series 1 Shares”).

TD has entered into an agreement with a group of underwriters led by TD Securities Inc. to issue, on a bought deal basis, 12 million Series 1 Shares at a price of $25.00 per share to raise gross proceeds of $300 million. TD has also granted the underwriters an option to purchase, on the same terms, up to an additional 2 million Series 1 Shares. This option is exercisable in whole or in part by the underwriters at any time up to two business days prior to closing.

The Series 1 Shares will yield 3.90% annually, payable quarterly, as and when declared by the Board of Directors of TD, for the initial period ending October 31, 2019. Thereafter, the dividend rate will reset every five years at a level of 2.24% over the then five-year Government of Canada bond yield.

Subject to regulatory approval, on October 31, 2019 and on October 31 every 5 years thereafter, TD may redeem the Series 1 Shares, in whole or in part, at $25.00 per share. Subject to TD’s right of redemption, holders of the Series 1 Shares will have the right to convert their shares into Non-Cumulative Floating Rate Preferred Shares, Series 2 (the “Series 2 Shares”), subject to certain conditions, on October 31, 2019, and on October 31 every five years thereafter. Holders of the Series 2 Shares will be entitled to receive quarterly floating dividends, as and when declared by the Board of Directors of TD, equal to the three-month Government of Canada Treasury bill yield plus 2.24%.

The expected closing date is June 4, 2014. TD will make an application to list the Series 1 Shares as of the closing date on the Toronto Stock Exchange. The net proceeds of the offering will be used for general corporate purposes.

They later announced:

that as a result of strong investor demand for its previously announced Basel III-compliant domestic public offering of Non-Cumulative 5-Year Rate Reset Preferred Shares, Series 1 (the “Series 1 Shares”), the size of the offering has been increased to 20 million Series 1 Shares. The gross proceeds of the offering will now be $500 million. The offering will be underwritten by a group of underwriters led by TD Securities Inc.

The expected closing date is June 4, 2014. TD will make an application to list the Series 1 Shares as of the closing date on the Toronto Stock Exchange. The net proceeds of the offering will be used for general corporate purposes.

Given that TD.PR.S and TD.PR.Y both have Issue Reset Spreads below 170bp and are trading well above par, this issue looks extremely cheap at first glance. But TD.PR.S and TD.PR.Y are not NVCC compliant, so there is considerable less likelihood that they’ll be outstanding after 2021-1-31. So make of it what you will.

Click For Big

Update: Pfd-2 from DBRS. Note that this is one notch below the NVCC-non-compliant issues.

Royal Bank of Canada has announced:

a domestic public offering of $250 million of Non-Cumulative, 5-Year Rate Reset Preferred Shares Series BB.

Royal Bank of Canada will issue 10 million Preferred Shares Series BB priced at $25 per share and holders will be entitled to receive a non-cumulative quarterly fixed dividend for the initial period ending August 24, 2014 in the amount of $0.2190 per share, to yield 3.90 per cent annually. The bank has granted the Underwriters an option, exercisable in whole or in part, to purchase up to an additional 2 million Preferred Shares Series BB at the same offering price.

Subject to regulatory approval, on or after August 24, 2019, the bank may redeem the Preferred Shares Series BB in whole or in part at par. Thereafter, the dividend rate will reset every five years at a rate equal to 2.26 per cent over the 5-year Government of Canada bond yield. Holders of Preferred Shares Series BB will, subject to certain conditions, have the right to convert all or any part of their shares to Non-Cumulative Floating Rate Preferred Shares Series BC on August 24, 2019 and on August 24 every five years thereafter.

Holders of the Preferred Shares Series BC will be entitled to receive a non-cumulative quarterly floating dividend at a rate equal to the 3-month Government of Canada Treasury Bill yield plus 2.26 per cent. Holders of Preferred Shares Series BC will, subject to certain conditions, have the right to convert all or any part of their shares to Preferred Shares Series BB on August 24, 2024 and on August 24 every five years thereafter.

The offering will be underwritten by a syndicate led by RBC Capital Markets. The expected closing date is June 3, 2014.

We routinely undertake funding transactions to maintain strong capital ratios and a cost effective capital structure. Net proceeds from this transaction will be used for general business purposes.

They later announced:

that as a result of strong investor demand for its previously announced domestic public offering of Non-Cumulative, 5-Year Rate Reset Preferred Shares Series BB, the size of the offering has been increased to 20 million shares. The gross proceeds of the offering will now be $500 million.

Great-West Lifeco Inc. has announced that it:

has today entered into an agreement with a syndicate of underwriters co-led by BMO Capital Markets and Scotiabank under which the underwriters have agreed to buy, on a bought deal basis, 6,000,000 Non-Cumulative First Preferred Shares, Series S (the “Series S Shares”) from Lifeco for sale to the public at a price of $25.00 per Series S Share, representing aggregate gross proceeds of $150 million.

Lifeco has granted the underwriters an underwriters’ option to purchase an additional 2,000,000 Series S Shares at the same offering price. Should the underwriters’ option be fully exercised, the aggregate gross proceeds of the Series S Shares offering will be $200 million.

The Series S Shares will yield 5.25% per annum, payable quarterly, as and when declared by the Board of Directors of the Company. The Series S Shares will not be redeemable prior to June 30, 2019. On and after June 30, 2019, Lifeco may, on not less than 30 nor more than 60 days’ notice, redeem for cash the Series S Shares in whole or in part, at the Company’s option, at $26.00 per share if redeemed on or after June 30, 2019 and prior to June 30, 2020; $25.75 per share if redeemed on or after June 30, 2020 and prior to June 30, 2021; $25.50 per share if redeemed on or after June 30, 2021 and prior to June 30, 2022; $25.25 per share if redeemed on or after June 30, 2022 and prior to June 30, 2023; and $25.00 per share if redeemed on or after June 30, 2023, in each case together with all declared and unpaid dividends up to but excluding the date of redemption.

The Series S Share offering is expected to close on May 22, 2014. The net proceeds will be used for general corporate purposes and to augment Lifeco’s current liquidity position.

They announced shortly afterwards that the greenshoe for another 2-million shares has been exercised, bringing the total issue size to $200-million.

I confess I’m a little surprised that they didn’t call GWO.PR.F, which has a coupon of 5.9% and is currently callable at par, but perhaps that will come later. Still, it’s nice to see another Straight Perpetual on the market; it is noteworthy that this is coming out of GWO, the most conservatively managed of the insurance companies.

Note that since this is an insurance issue, it will be analyzed by HIMIPref™ as a DeemedRetractible; a Deemed Maturity entry for 2025-1-31 at par has been added to the call schedule. This is due to my analysis, not as a result of anything in the prospectus.

Enbridge Inc. has announced:

that it has entered into an agreement with a group of underwriters to sell ten million Cumulative Redeemable Preference Shares, Series 11 (the “Series 11 Preferred Shares”) at a price of $25.00 per share for distribution to the public. Closing of the offering is expected on May 22, 2014.

The holders of Series 11 Preferred Shares will be entitled to receive fixed cumulative dividends at an annual rate of $1.10 per share, payable quarterly on the first day of March, June, September and December, as and when declared by the Board of Directors of Enbridge, yielding 4.40 per cent per annum, for the initial fixed rate period to but excluding March 1, 2020. The first quarterly dividend payment date is scheduled for September 1, 2014. The dividend rate will reset on March 1, 2020 and every five years thereafter at a rate equal to the sum of the then five-year Canadian Government bond yield plus 2.64 per cent. The Series 11 Preferred Shares are redeemable by Enbridge, at its option, on March 1, 2020 and on March 1 of every fifth year thereafter.

The holders of Series 11 Preferred Shares will have the right to convert their shares into Cumulative Redeemable Preference Shares, Series 12 (the “Series 12 Preferred Shares”), subject to certain conditions, on March 1, 2020 and on March 1 of every fifth year thereafter. The holders of Series 12 Preferred Shares will be entitled to receive quarterly floating rate cumulative dividends, as and when declared by the Board of Directors of Enbridge, at a rate equal to the sum of the 90-day Government of Canada Treasury bill rate plus 2.64 per cent.

Enbridge has granted to the underwriters an option, exercisable at any time up to 48 hours prior to the closing of the offering, to purchase up to an additional two million Series 11 Preferred Shares at a price of $25.00 per share.

The offering is being made only in Canada by means of a prospectus supplement to the base shelf prospectus of the Corporation dated June 6, 2013. Proceeds will be used to partially fund capital projects, to reduce existing indebtedness and for other general corporate purposes of the Corporation and its affiliates.

The syndicate of underwriters is led by Scotiabank, CIBC, RBC Capital Markets, and TD Securities.

They announced shortly afterwards:

that as a result of strong investor demand for its previously announced offering of Cumulative Redeemable Preference Shares, Series 11 (the “Series 11 Preferred Shares”), the size of the offering has been increased to 20 million shares. The aggregate gross proceeds will be C$500 million. Closing of the offering is expected on May 22, 2014.

This issue is virtually identical to ENB.PF.A, a FixedReset 4.40%+266, which commenced trading March 13, 2014, with a first Exchange date of 2019-12-1. That issue closed Friday at 25.60-65 and closed today at 25.30-39 … the new price is not an indicator of expensiveness because it goes ex-dividend tomorrow.

Update, 2015-05-15: DBRS rates Pfd-2(low).