Enbridge holders choose to convert 2.35 million series H preferreds

By Angela McDaniels

Tacoma, Wash., Aug. 17 – Enbridge Inc. said 2,350,602 of its series H cumulative redeemable preference shares were tendered for conversion.

As previously reported, the company decided not to exercise its Sept. 1 call right, triggering the conversion option. The conversion period ended at 5 p.m. ET on Aug. 17.

The tendered series H preference shares will be converted on a one-for-one basis into series I cumulative redeemable preference shares on Sept. 1.

As a result, Enbridge will have 11,649,398 series H preference shares and 2,350,602 series I preference shares issued and outstanding on Sept. 1, according to a company news release.

The Toronto Stock Exchange has conditionally approved the listing of the series I preference shares, which will begin trading on Sept. 1 subject to the fulfillment of all listing requirements.

The new annual dividend rate applicable to the series H preference shares for the five-year period beginning on Sept. 1 will be 6.112%, which is equal to the five-year Government of Canada bond yield of 3.992% plus 212 basis points.

The dividend rate applicable to the series I preference shares for the three-month period beginning on Sept. 1 will be 1.79258%, based on the annual rate on three-month Government of Canada treasury bills for the most recent treasury bills auction of 5.07% plus 212 bps. The rate will be reset every quarter.

Enbridge is an energy infrastructure company based in Calgary, Alta.

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