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Preferred Share Description
Enbridge Inc. (ENB.PF.V)
5.3753% U.S.$, Cumulative, Redeemable, Rate-Reset, Series 5 preferred shares
Prospectus - September 19, 2013.
DRBS Credit Update: July 23, 2018 - DBRS 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 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 strategic plan to reposition its asset mix to a pure regulated pipeline and utility business model (demonstrated by $7.5 billion of announced non-core asset sales to date) and completion of its current large portfolio of low-risk capital projects, combined with an improving financial risk profile that should benefit from ENB’s more conservative recent funding plan (including the expected $4.0 billion consolidated debt reduction), corporate simplification and the potential for reduced 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.
Dividend Note: The Series 5 annual dividend rate has been reset to 5.3753% for the next five years, beginning March 1, 2019. This dividend reset is an increase from the share's original 4.40% annual rate.
- DBRS Rating
- Pfd-3 (high) Stable Trend
- DBRS Rating Date
- Shares Issued
- Issued Date
- Shares O/S
- O/S Date
- U.S.$1.343825 per share per year
- Dividend Dates
- Payable on the 1st day of March, June, September and December
- Dividend Details
- The annual dividend rate is fixed until March 1, 2024. On March 1, 2024 and on March 1st every five years thereafter the annual dividend rate will be reset and equal to the sum of the 5-Year United States Government Bond Yield (USGG5YR) plus 2.82%.
- The Series 5 preferred shares are not redeemable prior to March 1, 2024. On March 1, 2024 and on March 1 every fifth year thereafter, the Corporation may, at its option, redeem for cash all or any part of the outstanding Series 5 shares at U.S$25.00, per share, plus all accrued and unpaid dividends.
- Holders of the Series 5 preferred shares will have the right to convert all or any of their shares into floating-rate, cumulative redeemable preferred shares, Series 6, of the corporation on March 1, 2024 and on March 1 every fifth year thereafter. The Series 6 floating-rate preferred shares will calculate and pay a dividend quarterly. The annual dividend rate will equal the sum of the 3-month US Treasury Bill Rate plus 2.82%. In addition, on March 1, 2024 and on March 1 every 5 years thereafter holders of the Series 6 floating-rate shares shall have the right to convert any or all of their shares into an equal number of Series 5 rate-reset preferred shares.
- Lead Underwriter(s)
- CIBC World Markets, RBC Dominion Securities, Scotia Capital Inc. and TD Securities
- Transfer Agent
- CIBC Mellon Trust Company
- CIBC Mellon Trust Company
- Dividend Reinvestment Plan
- Not available to Preferred Shareholders. DRIP is only available to Common Shareholders.
- Last Updated