DBRS Rates Enbridge Inc.’s Preferred Share Issue at Pfd-2 (low), Stable Trend

DBRS has today assigned a rating of Pfd-2 (low) with a Stable trend to Enbridge Inc.’s (Enbridge or the Company) $400 million cumulative redeemable preferred shares, Series P (the Series P Preferred Shares), which have a dividend rate of 4.0% per annum, payable quarterly for the initial fixed-term period ending March 1, 2019. The dividend rate will reset on March 1, 2019, and on March 1 every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield plus 2.50%. The Series P Preferred Shares are redeemable by Enbridge on March 1, 2019, and on March 1 of every fifth year thereafter.

Holders of the Series P Preferred Shares will have the right, at their option, to convert their shares into cumulative redeemable preferred shares, Series Q (Series Q Preferred Shares), subject to certain conditions, on March 1, 2019, and on March 1 every five years thereafter. Holders of the Series Q Preferred Shares will be entitled to receive cumulative quarterly dividends at a rate equal to the sum of the then 90-day Government of Canada Treasury Bill rate plus 2.50%.

The Series P Preferred Shares are to be issued under a prospectus supplement dated September 6, 2012, to the short form base shelf prospectus dated May 10, 2012, and are expected to close on September 13, 2012. The Series P Preferred Shares will rank equally with all outstanding cumulative redeemable preferred shares and with any future preferred shares issued by the Company. Net proceeds from the offering will be used to partially fund Enbridge’s capital projects, to reduce existing indebtedness and for general corporate purposes.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating North American Pipeline and Diversified Energy Companies (May 2011), which can be found on our website under Methodologies.