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Enbridge Provides Notice of Series 9 Preferred Shares Conversion Right and Announces Reset Dividend Rates

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Enbridge announced it will not redeem its Series 9 Preferred Shares on December 1, 2024. Holders can convert their Series 9 Shares to Series 10 Shares one-for-one, subject to minimum holding conditions. The new annual dividend rate for Series 9 Shares will be 5.672% for the period from December 1, 2024, to December 1, 2029. For Series 10 Shares, the dividend rate will be 1.55342% for the first quarter, based on treasury bills plus 2.66%. The conversion period runs from November 1 to November 18, 2024.

Enbridge ha annunciato che non rimborserà le sue Azioni Preferenziali di Serie 9 il 1° dicembre 2024. I possessori possono convertire le loro Azioni di Serie 9 in Azioni di Serie 10 in un rapporto uno a uno, soggetto a condizioni minime di detenzione. Il nuovo tasso di dividendo annuale per le Azioni di Serie 9 sarà del 5,672% per il periodo dal 1° dicembre 2024 al 1° dicembre 2029. Per le Azioni di Serie 10, il tasso di dividendo sarà del 1,55342% per il primo trimestre, basato sui titoli di stato più il 2,66%. Il periodo di conversione va dal 1° novembre al 18 novembre 2024.

Enbridge anunció que no redimirá sus Acciones Preferenciales de Serie 9 el 1 de diciembre de 2024. Los titulares pueden convertir sus Acciones de Serie 9 en Acciones de Serie 10 en una proporción de uno a uno, sujeto a condiciones mínimas de tenencia. La nueva tasa de dividendo anual para las Acciones de Serie 9 será del 5,672% para el período del 1 de diciembre de 2024 al 1 de diciembre de 2029. Para las Acciones de Serie 10, la tasa de dividendo será del 1,55342% para el primer trimestre, basada en letras del tesoro más el 2,66%. El período de conversión va del 1 al 18 de noviembre de 2024.

엔브리지는 2024년 12월 1일에 시리즈 9 우선주를 상환하지 않겠다고 발표했습니다. 보유자는 최소 보유 조건에 따라 시리즈 9 주식을 시리즈 10 주식으로 1:1 비율로 전환할 수 있습니다. 시리즈 9 주식의 새로운 연간 배당률은 2024년 12월 1일부터 2029년 12월 1일까지 5.672%입니다. 시리즈 10 주식의 경우, 배당률은 처음 분기에 대해 1.55342%가 되며, 이는 국채에 2.66%를 더한 수치입니다. 전환 기간은 2024년 11월 1일부터 11월 18일까지입니다.

Enbridge a annoncé qu'elle ne remboursera pas ses actions préférentielles de série 9 le 1er décembre 2024. Les détenteurs peuvent convertir leurs actions de série 9 en actions de série 10 au ratio de un pour un, sous réserve de conditions de détention minimales. Le nouveau taux de dividende annuel pour les actions de série 9 sera de 5,672% pour la période du 1er décembre 2024 au 1er décembre 2029. Pour les actions de série 10, le taux de dividende sera de 1,55342% pour le premier trimestre, basé sur les bons du Trésor plus 2,66%. La période de conversion s'étend du 1er novembre au 18 novembre 2024.

Enbridge hat angekündigt, dass die Rückzahlung seiner Serie 9 Vorzugsaktien am 1. Dezember 2024 nicht stattfinden wird. Inhaber können ihre Serie 9 Aktien im Verhältnis 1:1 in Serie 10 Aktien umwandeln, vorbehaltlich einer minimalen Haltebedingung. Der neue jährliche Dividendenzins für Serie 9 Aktien wird für den Zeitraum vom 1. Dezember 2024 bis zum 1. Dezember 2029 5,672% betragen. Für Serie 10 Aktien wird der Dividendenzins im ersten Quartal 1,55342% betragen, basierend auf Schatzwechseln zuzüglich 2,66%. Die Umwandlungsfrist läuft vom 1. November bis zum 18. November 2024.

Positive
  • Fixed dividend rate of 5.672% established for Series 9 shares for the next five years
  • Floating rate dividend of 1.55342% set for Series 10 shares for the first quarter
  • Flexibility provided to shareholders with conversion option between Series 9 and 10 shares
Negative
  • None.

CALGARY, AB, Nov. 1, 2024 /PRNewswire/ - 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 9 (Series 9 Shares) (TSX: ENB.PF.A) on December 1, 2024. As a result, subject to certain conditions, the holders of the Series 9 Shares have the right to convert all or part of their Series 9 Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series 10 of Enbridge (Series 10 Shares) on December 1, 2024. Holders who do not exercise their right to convert their Series 9 Shares into Series 10 Shares will retain their Series 9 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 9 Shares outstanding after December 1, 2024, then all remaining Series 9 Shares will automatically be converted into Series 10 Shares on a one-for-one basis on December 1, 2024; and (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series 10 Shares outstanding after December 1, 2024, no Series 9 Shares will be converted into Series 10 Shares. There are currently 11,000,000 Series 9 Shares outstanding.

With respect to any Series 9 Shares that remain outstanding after December 1, 2024, 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 9 Shares for the five-year period commencing on December 1, 2024 to, but excluding, December 1, 2029 will be 5.672 percent, being equal to the five-year Government of Canada bond yield of 3.012 percent determined as of today plus 2.66 percent in accordance with the terms of the Series 9 Shares.

With respect to any Series 10 Shares that may be issued on December 1, 2024, 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 10 Shares for the three-month floating rate period commencing on December 1, 2024 to, but excluding, March 1, 2025 will be 1.55342 percent, based on the annual rate on three month Government of Canada treasury bills for the most recent treasury bills auction of 3.64 percent plus 2.66 percent in accordance with the terms of the Series 10 Shares (the Floating Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will be reset every quarter.

Beneficial holders of Series 9 Shares who wish to exercise their right of conversion during the conversion period, which runs from November 1, 2024 until 5:00 p.m. (EST) on November 18, 2024, 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 9 Shares into Series 10 Shares on December 1, 2024, the annual dividend rate that will apply to any outstanding Series 9 Shares on December 1, 2024, the quarterly dividend rate that will apply to any outstanding Series 10 Shares on December 1, 2024, 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 9 Shares will exercise their right to convert their Series 9 Shares into Series 10 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.

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SOURCE Enbridge Inc.

FAQ

What is the new dividend rate for Enbridge Series 9 Preferred Shares (ENB.PF.A)?

The new annual dividend rate for Enbridge Series 9 Preferred Shares will be 5.672% for the five-year period from December 1, 2024, to December 1, 2029.

When can Enbridge shareholders convert Series 9 shares to Series 10 shares?

Shareholders can convert their Series 9 shares to Series 10 shares during the conversion period from November 1, 2024, until 5:00 p.m. (EST) on November 18, 2024.

What is the initial dividend rate for Enbridge Series 10 Preferred Shares?

The initial dividend rate for Series 10 Shares will be 1.55342% for the three-month period from December 1, 2024, to March 1, 2025.

How many Enbridge Series 9 Preferred Shares are currently outstanding?

There are currently 11,000,000 Series 9 Preferred Shares outstanding.

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