CALGARY,
AB, Jan. 30, 2025 /CNW/ - Enbridge Inc. (TSX:
ENB) (NYSE: ENB) (Enbridge or the Company) announced today that it
does not intend to exercise its right to redeem its currently
outstanding Cumulative Redeemable Preference Shares, Series 11
(Series 11 Shares) (TSX: ENB.PF.C) on March
1, 2025. As a result, subject to certain conditions, the
holders of the Series 11 Shares have the right to convert all or
part of their Series 11 Shares on a one-for-one basis into
Cumulative Redeemable Preference Shares, Series 12 of Enbridge
(Series 12 Shares) on March 1, 2025.
Holders who do not exercise their right to convert their Series 11
Shares into Series 12 Shares will retain their Series 11
Shares.
The foregoing conversion right is subject to the conditions
that: (i) if Enbridge determines that there would be less than
1,000,000 Series 11 Shares outstanding after March 1, 2025, then all remaining Series 11
Shares will automatically be converted into Series 12 Shares on a
one-for-one basis on March 1, 2025;
and (ii) alternatively, if Enbridge determines that there would be
less than 1,000,000 Series 12 Shares outstanding after March 1, 2025, no Series 11 Shares will be
converted into Series 12 Shares. There are currently 20,000,000
Series 11 Shares outstanding.
With respect to any Series 11 Shares that remain outstanding
after March 1, 2025, holders thereof
will be entitled to receive quarterly fixed cumulative preferential
cash dividends, as and when declared by the Board of Directors of
Enbridge. The new annual dividend rate applicable to the Series 11
Shares for the five-year period commencing on March 1, 2025 to, but excluding, March 1, 2030 will be 5.477 percent, being equal
to the five-year Government of Canada bond yield of 2.837 percent determined
as of today plus 2.64 percent in accordance with the terms of the
Series 11 Shares.
With respect to any Series 12 Shares that may be issued on
March 1, 2025, holders thereof will
be entitled to receive quarterly floating rate cumulative
preferential cash dividends, as and when declared by the Board of
Directors of Enbridge. The dividend rate applicable to the Series
12 Shares for the three-month floating rate period commencing on
March 1, 2025 to, but excluding,
June 1, 2025 will be 1.41151 percent,
based on the annual rate on three month Government of Canada treasury bills for the most recent
treasury bills auction of 2.96 percent plus 2.64 percent in
accordance with the terms of the Series 12 Shares (the Floating
Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will
be reset every quarter.
Beneficial holders of Series 11 Shares who wish to exercise
their right of conversion during the conversion period, which runs
from January 30, 2025 until
5:00 p.m. (EST) on February 14, 2025, should communicate as soon as
possible with their broker or other intermediary for more
information. It is recommended that this be done well in advance of
the deadline in order to provide the broker or other intermediary
time to complete the necessary steps. Any notices received after
this deadline will not be valid.
Forward-Looking Statements
Forward-looking information, or forward-looking statements,
have been included in this news release to provide information
about Enbridge, including statements with respect to the conversion
of all or part of the Series 11 Shares into Series 12 Shares on
March 1, 2025, the annual dividend
rate that will apply to any outstanding Series 11 Shares on
March 1, 2025, the quarterly dividend
rate that will apply to any outstanding Series 12 Shares on
March 1, 2025, and the declaration of
dividends by the Board of Directors of Enbridge. This information
may not be appropriate for other purposes. Although Enbridge
believes these forward-looking statements are reasonable based on
the information available on the date such statements are made and
on processes used to prepare the information, such statements are
not guarantees of future events and readers are cautioned against
placing undue reliance on forward-looking statements. By their
nature, these statements involve a variety of assumptions, known
and unknown risks and uncertainties and other factors, which may
cause actual events to differ materially from those expressed or
implied by such statements. Material assumptions include
assumptions about whether holders of Series 11 Shares will exercise
their right to convert their Series 11 Shares into Series 12
Shares.
Enbridge's forward-looking statements are subject to risks
and uncertainties, including, but not limited to those risks and
uncertainties discussed in this news release and in the Company's
other filings with Canadian and United
States securities regulators. The impact of any one risk,
uncertainty or factor on a particular forward-looking statement is
not determinable with certainty as these are interdependent
and
Enbridge's future course of action depends on management's
assessment of all information available at the relevant time.
Except to the extent required by applicable law, Enbridge assumes
no obligation to publicly update or revise any forward-looking
statements made in this news release or otherwise, whether as a
result of new information, future events or otherwise. All
subsequent forward-looking statements, whether written or oral,
attributable to Enbridge or persons acting on its behalf, are
expressly qualified in their entirety by these cautionary
statements.
About Enbridge Inc.
At Enbridge, we safely connect millions of people to the energy
they rely on every day, fueling quality of life through our North
American natural gas, oil and renewable power networks and our
growing European offshore wind portfolio. We're investing in modern
energy delivery infrastructure to sustain access to secure,
affordable energy and building on more than a century of operating
conventional energy infrastructure and two decades of experience in
renewable power. We're advancing new technologies including
hydrogen, renewable natural gas, carbon capture and storage.
Headquartered in Calgary, Alberta, Enbridge's common shares trade under
the symbol ENB on the Toronto (TSX) and New
York (NYSE) stock exchanges. To learn more, visit us at
enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Investment
Community
Toll Free: (888)
992-0997
Toll Free: (800) 481-2804
Email:
media@enbridge.com
Email: investor.relations@enbridge.com
View original
content:https://www.prnewswire.com/news-releases/enbridge-provides-notice-of-series-11-preferred-shares-conversion-right-and-announces-reset-dividend-rates-302364902.html
SOURCE Enbridge Inc.
