By Cristal Cody
Prospect News, Sept. 4 - Enbridge Inc. announced on Tuesday that it sold an upsized C$400 million of cumulative redeemable preference shares that yield a 4% annual dividend for the initial seven-year period.
The company sold 16 million shares of the series P preferred stock (Baa3/BBB/DBRS: Pfd-2) at C$25.00 per share in a deal upsized from C$250 million, or 10 million shares.
TD Securities Inc., CIBC World Markets Inc., RBC Capital Markets Corp. and Scotia Capital Inc. were the lead managers.
The dividend rate will reset on March 1, 2019 and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield plus 250 bps.
The preferreds are redeemable by Enbridge, at its option, on March 1, 2019 and on March 1 of every fifth year thereafter.
Proceeds from the sale will be used to partially fund capital projects, 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$400 million (16 million shares)
|
| Maturity: | March 1, 2019
|
| Securities: | Cumulative redeemable preference shares
|
| Bookrunners: | TD Securities Inc., CIBC World Markets Inc., RBC Capital Markets Corp., Scotia Capital Inc.
|
| Dividend: | 4%
|
| Price: | C$25.00 per share
|
| Yield: | 4%
|
| Redemption: | March 1, 2019 and on March 1 of every fifth year thereafter
|
| Pricing date: | Sept. 4
|
| Settlement date: | Sept. 13
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| DBRS: Pfd-2
|
| Distribution: | Canada
|
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