By Cristal Cody
Prospect News, Nov. 14 - Enbridge Inc. announced on Monday that it sold C$450 million of series D cumulative redeemable preference shares that yield 4% annually for the initial period ending March 1, 2018.
The dividend rate will reset on March 1, 2018 and every five years after that at a rate equal to the five-year Government of Canada bond yield plus 237 basis points.
The issue size was upsized from C$300 million.
In the deal, Enbridge sold 18 million preferreds at a price of $25 each.
TD Securities Inc., RBC Capital Markets Corp. and Scotia Capital Inc. were the lead managers.
The deal includes a greenshoe of 2 million preferreds that is exercisable before the issue closes on Nov. 23.
The series D preferreds are redeemable by Enbridge at its option on March 1, 2018 and on March 1 of every fifth year thereafter.
Proceeds will be used to partially fund capital projects, reduce existing debt and for general corporate purposes.
Enbridge is a Calgary, Alta.-based oil and gas distributor and transportation company.
| Issuer: | Enbridge Inc.
|
| Issue: | Series D cumulative redeemable preference shares
|
| Amount: | C$450 million, or 18 million preferreds
|
| Greenshoe: | 2 million preferreds
|
| Bookrunners: | TD Securities Inc., RBC Capital Markets Corp. and Scotia Capital Inc.
|
| Price: | C$25.00
|
| Dividend: | Initially 4%; beginning March 1, 2018, five-year Government of Canada bond yield plus 237 bps, reset every five years
|
| Call option: | On March 1, 2018 and on March 1 of every fifth year thereafter
|
| Pricing date: | Nov. 14
|
| Settlement date: | Nov. 23
|
| Distribution: | Canada
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