Business
Enbridge Provides Notice of Series 7 Preferred Shares Conversion Right and Announces Reset Dividend Rates
Enbridge Provides Notice of Series 7 Preferred Shares Conversion Right and Announces Reset Divide...
About this update from Enbridge Inc.
[{"type":"text","content":"\n \n \n \n Enbridge Provides Notice of Series 7 Preferred Shares Conversion Right and Announces Reset Dividend Rates\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n CALGARY, AB\n \n \n ,\n \n \n Jan. 31, 2024\n \n \n /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 7 (Series 7 Shares) (TSX: ENB.PR.J) on\n \n March 1, 2024\n \n . As a result, subject to certain conditions, the holders of the Series 7 Shares have the right to convert all or part of their Series 7 Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series 8 of Enbridge (Series 8 Shares) on\n \n March 1, 2024\n \n . Holders who do not exercise their right to convert their Series 7 Shares into Series 8 Shares will retain their Series 7 Shares.\n \n \n The foregoing conversion right is subject to the conditions that: (i) if Enbridge determines that there would be less than 1,000,000 Series 7 Shares outstanding after\n \n March 1, 2024\n \n , then all remaining Series 7 Shares will automatically be converted into Series 8 Shares on a one-for-one basis on\n \n March 1, 2024\n \n ; and (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series 8 Shares outstanding after\n \n March 1, 2024\n \n , no Series 7 Shares will be converted into Series 8 Shares. There are currently 10,000,000 Series 7 Shares outstanding.\n \n \n With respect to any Series 7 Shares that remain outstanding after\n \n March 1, 2024\n \n , 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 7 Shares for the five-year period commencing on\n \n March 1, 2024\n \n to, but excluding,\n \n March 1, 2029\n \n will be 5.988 percent, being equal to the five-year Government of\n \n Canada\n \n bond yield of 3.418 percent dete...