By Cristal Cody
Prospect News, Sept. 21 - Enbridge Inc. (Baa3/BBB/DBRS: Pfd-2) announced on Wednesday that it sold an upsized C$500 million of cumulative redeemable preference shares to yield 4% a year for the initial fixed-rate period ending June 1, 2017.
The deal was upsized from C$300 million, or 12 million shares, to 20 million shares based on strong investor demand, the company said in a statement.
The series B preferreds were sold at C$25.00 per share.
The shares are redeemable by Enbridge on June 1, 2017 and on June 1 of every fifth year thereafter.
Scotia Capital Inc., RBC Capital Markets Corp. and TD Securities Inc. were the lead managers.
Proceeds will be used to reduce outstanding debt, for capital expenditures and for general corporate purposes.
Calgary, Alta.-based Enbridge is oil and gas distributor and transportation company.
| Issuer: | Enbridge Inc.
|
| Amount: | C$500 million, or 20 million shares
|
| Maturity: | June 1, 2017 (initial redemption date)
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| Securities: | Cumulative redeemable preference shares
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| Bookrunners: | Scotia Capital Inc., RBC Capital Markets Corp., TD Securities Inc.
|
| Dividend: | 4%
|
| Price: | C$25.00 per share
|
| Yield: | 4%
|
| Pricing date: | Sept. 21
|
| Settlement date: | Sept. 30
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
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| DBRS: Pfd-2
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| Distribution: | Canada
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