8-K

ENBRIDGE INC 8-K Report (Feb 1, 2012)

Filed February 1, 2012For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

This Form 6-K filing by Enbridge Inc. (ENB) on February 1, 2012, primarily details two key events. First, it announces the successful closing of a $500 million public offering of cumulative redeemable preferred shares, Series F. These shares, which began trading on the TSX under the symbol ENB.PR.F, offer a fixed annual dividend of $1.00 per share (yielding 4.00%) for an initial period until June 1, 2018. The proceeds are earmarked for capital projects, debt reduction, and general corporate purposes, indicating the company's ongoing investment and financial management activities. Second, the report addresses a minor natural gas leak investigation in the U.S. Gulf of Mexico near its Stingray pipeline. While Enbridge is investigating and preparing for repairs if necessary, the company stated it does not anticipate any material business interruption from this incident. This disclosure provides transparency on operational events and their potential impact.

Key Highlights

  • 1Enbridge successfully closed a $500 million public offering of Series F Preferred Shares on January 18, 2012.
  • 2The Series F Preferred Shares offer a fixed cumulative dividend of $1.00 per share annually, yielding 4.00%, for the initial period ending June 1, 2018.
  • 3Proceeds from the preferred share offering will be used for capital projects, reducing existing debt, and general corporate purposes.
  • 4The Series F Preferred Shares have a redemption option for Enbridge and conversion rights for holders into Series G Preferred Shares on specific dates starting June 1, 2018.
  • 5Enbridge is investigating a reported small natural gas leak near its Stingray pipeline in the U.S. Gulf of Mexico.
  • 6The company has indicated that no material business interruption is anticipated from the reported leak investigation.

Frequently Asked Questions

The proceeds from the $500 million offering of Series F Preferred Shares were intended to partially fund Enbridge's capital projects, reduce existing indebtedness, and support other general corporate purposes.

The Series F Preferred Shares pay fixed cumulative dividends at an annual rate of $1.00 per share, or 4.00% yield, payable quarterly. The dividend rate is fixed until June 1, 2018, after which it will reset every five years based on the Government of Canada five-year bond yield plus 2.51%.

Enbridge is investigating a reported small natural gas leak near its Stingray pipeline in the U.S. Gulf of Mexico. While a dive boat was dispatched for investigation and repairs are planned if a leak is confirmed, the company stated that the Stingray Pipeline was operating under normal parameters and no material business interruption was anticipated.

The Series F Preferred Shares began trading on the Toronto Stock Exchange (TSX) on January 18, 2012, under the symbol ENB.PR.F.