Enbridge Announces Conversion Results for Series 9 Preferred Shares

Rhea-AI Summary

Enbridge Inc. (TSX: ENB) (NYSE: ENB) announced that no conversion of its outstanding Cumulative Redeemable Preference Shares, Series 9 into Series 10 Shares will occur on December 1, 2024. This decision comes after receiving insufficient conversion notices from Series 9 shareholders, with less than the required 1,000,000 shares being tendered for conversion by the November 18, 2024 deadline.

Insights

Financial Analyst

The Series 9 preferred shares conversion announcement represents a routine administrative update with minimal market impact. The insufficient conversion interest (1,000,000 shares threshold not met) means the existing Series 9 shares will continue with their current terms. This maintains the status quo for Enbridge's capital structure and doesn't materially affect the company's financial position or dividend obligations.

For preferred shareholders, this outcome suggests they find the current Series 9 terms more attractive than the potential Series 10 conversion option. The lack of conversion interest typically indicates satisfaction with existing dividend rates and terms. This stability in the preferred share structure is generally positive for both preferred and common shareholders, though the impact is minimal in the context of Enbridge's 93 billion market capitalization.

CALGARY, AB, Nov. 18, 2024 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge) announced today that none of its outstanding Cumulative Redeemable Preference Shares, Series 9 (Series 9 Shares) will be converted into Cumulative Redeemable Preference Shares, Series 10 (Series 10 Shares) on December 1, 2024.

After taking into account all conversion notices received from holders of its outstanding Series 9 Shares by the November 18, 2024 deadline for the conversion of the Series 9 Shares into Series 10 Shares, less than the 1,000,000 Series 9 Shares required to give effect to conversions into Series 10 Shares were tendered for conversion.

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.

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SOURCE Enbridge Inc.

FAQ

What was the outcome of Enbridge's (ENB) Series 9 preferred shares conversion announcement?

No Series 9 preferred shares will be converted to Series 10 shares as less than the required 1,000,000 shares were tendered for conversion by the November 18, 2024 deadline.

What was the minimum number of shares required for Enbridge's (ENB) Series 9 to Series 10 conversion?

A minimum of 1,000,000 Series 9 shares were required to be tendered to enable the conversion into Series 10 shares.

When was the deadline for Enbridge's (ENB) Series 9 preferred shares conversion notices?

The deadline for Series 9 shareholders to submit conversion notices was November 18, 2024.