By Cristal Cody
Prospect News, April 10 - Enbridge Inc. announced that it sold $200 million of U.S. dollar-denominated cumulative redeemable preference shares in the Canadian market on Tuesday.
The company sold 8 million of the series J preferreds (Baa3/BBB/DBRS: Pfd-2) at $25 each.
The preferreds yield a 4% annual dividend for the initial period to June 1, 2017. The dividend rate will reset on June 1, 2017 and every five years thereafter at the five-year U.S. government bond yield plus 305 basis points.
Scotia Capital Inc. was the lead manager.
The preferreds are redeemable by Enbridge, at its option, on June 1, 2017 and on June 1 of every fifth year thereafter.
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: | $200 million
|
| Securities: | Series J cumulative redeemable preference shares
|
| Bookrunner: | Scotia Capital Inc.
|
| Dividend: | Initially 4%; beginning, June 1, 2017, five-year U.S. government bond yield plus 305 bps; floating rate is reset every five years
|
| Price: | $25
|
| Call option: | Every five years beginning June 1, 2017
|
| Pricing date: | April 10
|
| Settlement date: | April 19
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| DBRS: Pfd-2
|
| Distribution: | Canada
|
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