8-K

ENBRIDGE INC 8-K Report (Dec 1, 2016)

Filed December 1, 2016For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) filed a Form 6-K on December 1, 2016, reporting on several key events related to its financing activities. The primary focus is the company's successful closing of a $750 million public offering of Cumulative Redeemable Minimum Rate Reset Preference Shares, Series 17. These preferred shares are intended to partially fund capital projects, reduce existing indebtedness, and support general corporate purposes. The offering, which was initially for 20 million shares and later increased to 30 million due to strong investor demand, provides Enbridge with significant capital. The Series 17 Preferred Shares offer a fixed cumulative dividend of $1.2875 per share annually, yielding 5.15% for the initial period until March 1, 2022. The dividend rate is subject to reset thereafter, tied to Canadian Government bond yields. These shares began trading on the TSX under the symbol ENB.PF.I.

Key Highlights

  • 1Enbridge closed a $750 million public offering of Cumulative Redeemable Minimum Rate Reset Preference Shares, Series 17.
  • 2The offering size was increased from an initial 20 million shares to 30 million due to strong investor demand.
  • 3Proceeds will be used for capital projects, debt reduction, and general corporate purposes.
  • 4The Series 17 Preferred Shares offer an initial fixed annual dividend of $1.2875 per share, yielding 5.15%.
  • 5The dividend rate is fixed until March 1, 2022, after which it will reset every five years based on Canadian Government bond yields plus a spread.
  • 6The Series 17 Preferred Shares carry the option for holders to convert into Series 18 Preferred Shares (floating rate) on specific dates starting in 2022.
  • 7The Series 17 Preferred Shares began trading on the TSX under the symbol ENB.PF.I.

Frequently Asked Questions

The main purpose of this filing was to report on the closing of Enbridge's $750 million public offering of Series 17 Preferred Shares, detailing the amount raised, the use of proceeds, and key terms of the preferred shares.

Enbridge raised $750 million in gross proceeds from the public offering of 30 million Series 17 Preferred Shares.

The Series 17 Preferred Shares offer a fixed cumulative dividend of $1.2875 per share annually, yielding 5.15% for the initial period until March 1, 2022. They are redeemable by Enbridge and holders have the right to convert them to Series 18 Preferred Shares (floating rate) on specified dates starting in 2022. They trade on the TSX under the symbol ENB.PF.I.

The proceeds are expected to be used to partially fund capital projects, to reduce existing indebtedness, and for other general corporate purposes of the Company and its affiliates.