By Cristal Cody
Prospect News, March 20 - Enbridge Inc. said on Tuesday that it priced C$300 million of cumulative redeemable preference shares to yield 4% for the initial fixed-rate period up to Sept. 1, 2018.
The company sold 12 million shares of the series H preferred stock (Baa3/BBB/DBRS: Pfd-2) at C$25.00 per share.
The dividend rate will reset on Sept. 1, 2018 and every five years thereafter at a rate equal to the then five-year Government of Canada bond yield plus 212 basis points.
RBC Capital Markets Corp., Scotia Capital Inc. and TD Securities Inc. were the lead managers.
The issue includes an over-allotment option of an additional 2 million shares, or C$50 million.
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$300 million, 12 million shares
|
| Greenshoe: | C$50 million, 2 million shares
|
| Initial maturity: | Sept. 1, 2018
|
| Securities: | Cumulative redeemable preference shares
|
| Bookrunners: | RBC Capital Markets Corp., Scotia Capital Inc., TD Securities Inc.
|
| Dividend: | 4%; resets Sept. 1, 2018 and every five years thereafter at Government of Canada bond yield plus 212 bps
|
| Price: | C$25.00 per share
|
| Yield: | 4%
|
| Pricing date: | Match 20
|
| Settlement date: | March 29
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| DBRS: Pfd-2
|
| Distribution: | Canada
|
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