By Cristal Cody
Prospect News, Jan. 9 - Enbridge Inc. announced on Monday that it sold an upsized C$500 million, or 20 million shares, of 4% cumulative redeemable preference stock.
The offering was upsized from C$300 million, or 12 million shares.
The deal includes 20 million shares of series F stock, priced at C$25.00 per share.
The preference shares (Baa3/BBB/DBRS: Pfd-2) pay a 4% dividend for the initial fixed-rate period through June 1, 2018.
The stock is callable on June 1, 2018 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 partially fund capital projects, to reduce existing debt and for other general corporate purposes.
Enbridge is a Calgary, Alta.-based oil and gas distributor and transportation company.
| Issuer: | Enbridge Inc.
|
| Amount: | C$500 million, 20 million shares
|
| Maturity: | June 1, 2018
|
| Securities: | Cumulative redeemable preference shares
|
| Bookrunners: | Scotia Capital Inc., RBC Capital Markets Corp., TD Securities Inc.
|
| Dividend: | 4%
|
| Price: | Par of C$25.00 per share
|
| Yield: | 4%
|
| Call feature: | June 1, 2018 and on June 1 of every fifth year thereafter
|
| Pricing date: | Jan. 9
|
| Settlement date: | Jan. 18
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| DBRS: Pfd-2
|
| Distribution: | Canada
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