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Preferred Share Description
Enbridge Inc. (ENB.PR.T) **Dividend Rate Reset**
4.073% Cumulative, Redeemable, Rate-Reset, Series R preferred shares
Prospectus - November 28, 2012
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: On May 2, 2019, the company announced the share's annual dividend rate will be reset to 4.073% for the period June 1, 2019 to June 1, 2024. This is an rate increase from the share's initial annual dividend rate of 4.00%.
- DBRS Rating
- Pfd-3 (high) Stable Trend
- DBRS Rating Date
- Shares Issued
- Issued Date
- Shares O/S
- O/S Date
- $1.01825 per share per year
- Dividend Dates
- Payable on the 1st day of March, June, September and December
- Dividend Details
- The dividend is initially fixed until June 1, 2019. On June 1, 2019 and on June 1st every five years thereafter the dividend rate will be fixed and equal to the sum of the Government Of Canada Yield (GCAN5YR) plus 2.50%.
- The Series R preferred shares are not redeemable prior to June 1, 2024. On June 1, 2024 and on June 1st in every fifth year thereafter, the Corporation may, at its option, redeem for cash all or any part of the outstanding Series R shares at $25.00, per share, plus all accrued and unpaid dividends.
- Holders of the Series R preferred shares will have the right to convert all or any of their shares into cumulative redeemable preferred shares, Series S (Floating Rate Preferred Shares) of the corporation on June 1, 2024 and on June 1st in every fifth year thereafter. The series S shares will calculate and pay a dividend quarterly. The annual dividend rate will equal to the sum of the Government of Canada 3-month T-Bill Rate plus 2.50%. In addition, holders of the Series S Floating-Rate shares will have the option to convert all or a portion of their shares into Series R shares on June 1, 2024 and on June 1st every 5 years thereafter.
- Lead Underwriter(s)
- Scotia Capital Inc., RBC Dominion Securities Inc., TD Securities Inc.
- 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