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Preferred Share Description
Enbridge Inc. (ENB.PF.K) **New Issue**
4.90% Cumulative, Redeemable, Fixed Minimum Rate-Reset, Preference Shares, Series 19
Prospectus - December 5, 2017
DRBS Credit Update: October 19, 2017 - DBRS Limited confirmed the Issuer Rating of Enbridge Inc. at BBB (high) and the ratings on the Company’s Medium-Term Notes & Unsecured Debentures at BBB (high), Fixed-to-Floating Subordinated Notes at BBB (low), Cumulative Redeemable Preferred Shares at Pfd-3 (high) and Commercial Paper (CP) at R-2 (high), all with Stable trends. The confirmations incorporate DBRS’s assessment of ENB’s strong business risk profile, which should benefit over the medium term from its February 27, 2017, merger with Spectra Energy Corp (SEC) and completion of its current large portfolio of low-risk capital projects, combined with a relatively aggressive financial risk profile that continues to pressure its credit metrics and has resulted in increased structural subordination at the ENB level over time. The Stable trends incorporate DBRS’s expectation that any incremental investments in new projects would be consistent with maintaining a strong overall business risk profile and medium-term improvement in key credit metrics with the completion of the current large capital expenditure (capex) program.
Trading Note: The Series 19 preferred shares are expected to begin trading, on the TSX, on or about December 11, 2017.
- DBRS Rating
- Pfd-3 (high) Stable Trend
- DBRS Rating Date
- Shares Issued
- Issued Date
- Shares O/S
- O/S Date
- $1.225 per share per year
- Dividend Dates
- Payable on the 1st day of March, June, September and December
- Dividend Details
- The dividend for the Series 19 Preferred Shares will be fixed at 4.90% per year until March 1, 2023. On March 1, 2023 and on March 1st every 5 years thereafter, the dividend rate will be reset so that it equals the sum of the then 5-year Canadian Government bond yield plus 3.17%, provided that, in any event, such rate shall not be less than 4.90% per year.
- The shares are not redeemable by the company prior to March 1, 2023. On March 1, 2023 and on March 1st every 5-years thereafter, the company can, at it's option, redeem, all or in part, the shares at $25.00 each.
- On March 1, 2023 and on March 1 of every fifth year thereafter, holders of Series 19 Preferred Shares will have the right to convert their shares into an equal number of the Series 20 Floating-Rate Preference Shares. The dividends on the Series 20 Preferred Shares will be calculated and paid quarterly, at a rate equal to the sum of the 90-day Government of Canada Treasury bill rate plus 3.17%. In addition, on March 1, 2028 and on March 1st every 5 years thereafter holders of the Series 20 Floating-Rate shares may, at their option, convert all or a portion of their shares into an equal number os the Series 19 Rate Reset preferred shares.
- Transfer Agent
- CIBC Mellon Trust Company
- CIBC Mellon Trust Company
- Dividend Reinvestment Plan
- Not available to preferred share holders.
- Last Updated