PrefBlog

Enbridge Inc. has announced:

that it has entered into an agreement with a group of underwriters to sell 10 million cumulative redeemable preference shares, series N (the “Series N Preferred Shares”) at a price of $25.00 per share for distribution to the public. Closing of the offering is expected on July 17, 2012.

The holders of Series N Preferred Shares will be entitled to receive fixed cumulative dividends at an annual rate of $1.00 per share, payable quarterly on the 1st day of March, June, September and December, as and when declared by the Board of Directors of Enbridge, yielding 4.00 per cent per annum, for the initial fixed rate period to but excluding December 1, 2018. The first quarterly dividend payment date is scheduled for December 1, 2012. The dividend rate will reset on December 1, 2018 and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield plus 2.65 per cent. The Series N Preferred Shares are redeemable by Enbridge, at its option, on December 1, 2018 and on December 1 of every fifth year thereafter.

The holders of Series N Preferred Shares will have the right to convert their shares into cumulative redeemable preference shares, series O (the “Series O Preferred Shares”), subject to certain conditions, on December 1, 2018 and on December 1 of every fifth year thereafter. The holders of Series O 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 then 90-day Government of Canada treasury bill rate plus 2.65 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 N Preferred Shares at a price of $25.00 per share.

The offering is being made only in Canada by means of a prospectus. 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 co-led by RBC Capital Markets, CIBC, Scotiabank, and TD Securities Inc.

This will join the other Enbridge FixedResets:

• ENB.PR.B, 4.00%+240
• ENB.PR.D, 4.00%+237
• ENB.PR.F, 4.00%+251
• ENB.PR.H, 4.00%+212

All of these were bid in the neighborhood of 25.50 on July 6.

This entry was posted on Monday, July 9th, 2012 at 11:20 am and is filed under New Issues. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.