ENS.PR.A To Get Bigger

Middlefield Group has announced:

on behalf of E Split Corp. (TSX: ENS and ENS.PR.A) (the “Company”), is pleased to announce that the Company is undertaking an overnight treasury offering of class A and preferred shares (the “Class A Shares” and “Preferred Shares”, respectively).

The sales period for this overnight offering will end at 9:00 a.m. (ET) on Tuesday, November 2, 2021. The offering is expected to close on or about November 9, 2021 and is subject to certain closing conditions including approval by the Toronto Stock Exchange (“TSX”).

The Class A Shares will be offered at a price of $15.50 per Class A Share to yield 10.1% and the Preferred Shares will be offered at a price of $10.15 per Preferred Share to yield 5.2%. The closing price on the TSX for each of the Class A Shares and Preferred Shares on October 29, 2021 was $15.88 and $10.23, respectively. The Class A Share and Preferred Share offering prices were determined so as to be non-dilutive to the most recently calculated net asset value per unit of the Company (calculated as at October 29, 2021), as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the offering.

The Company invests in common shares of Enbridge Inc., a North American oil and gas pipeline, gas processing and natural gas distribution company.

The Company’s investment objectives for the:

Class A Shares are to provide holders with:
(i) non-cumulative monthly cash distributions; and
(ii) the opportunity for capital appreciation through exposure to the portfolio

Preferred Shares are to:
(i) provide holders with fixed cumulative preferential quarterly cash distributions; and
(ii) return the original issue price of $10.00 to holders upon maturity.

Middlefield Capital Corporation provides investment management advice to the Company.

The syndicate of agents for the offering is being co-led by CIBC Capital Markets and RBC Capital Markets.

For further information, please visit our website at www.middlefield.com or contact Nancy Tham in our Sales and Marketing Department at 1.888.890.1868.

The NAVPU was 24.28 on October 29 and they’re selling the Whole Units for 25.65, a premium of 5.64%. Not bad!

One Response to “ENS.PR.A To Get Bigger”

  1. jiHymas says:

    On an unrelated thread, Assiduous Reader fsabbagh asked


    What’s your opinion on E Split Corp’s Overnight Offering? Thinking of jumping on the preferred and Class A shares.


    I find the Enbridge preferreds to be more attractive. ENS and ENB should be considered the same name for issuer concentration calculation purposes.

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