QUANTUMONLINE.COM SECURITY DESCRIPTION: Enbridge, Inc. 6.375% Fixed-to-Floating Rate Subordinated Notes Series 2018-B due 2078, issued in $25 denominations, redeemable at the issuer's option on or after 4/15/2023 at $25 per note plus accrued and unpaid interest, and maturing 4/15/2078. Interest distributions of 6.375% per annum ($1.59375 per annum or $0.39844 per quarter) will be paid quarterly on 1/15, 4/15, 7/15 & 10/15 to holders of record on the record date that will be 1/1, 4/1, 7/1 & 10/1 (NOTE: the ex-dividend date is one business day prior to the record date). On 4/15/2023 until 4/15/2028 the interest rate on the Notes will be reset at per annum equal to the three month LIBOR plus 3.593%. On 4/15/2028 until 4/15/2043 the three month LIBOR will be, plus 3.843%. On 4/15/2043 until 4/15/2078 the three month LIBOR will be, plus 4.593%.
Distributions paid by these debt securities are interest and as such are NOT eligible for the preferential 15% to 20% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders.
Prior to the initial Interest Reset Date and within 90 days following the occurrence of a Rating Event, the Company may redeem the Notes at $25 principal amount of the Notes equal to 102% of the principal amount thereof, with accrued and unpaid interest and upon an occurrence of a tax event is equal to 100% of the principal amount (see prospectus for further details).
The issuer may defer the interest payable on the Notes on one or more occasions for up to five consecutive years (see prospectus for further information).
Upon the occurrence of an Automatic Conversion Event, the Notes, under certain circumstances, will be converted automatically into shares of a newly issued series of the Company's preference shares, designated as Preference Shares, Series 2018-B (see prospectus for further details).
Units are expected to trade flat, which means accrued interest will be reflected in the trading price and the purchasers will not pay and the sellers will not receive any accrued and unpaid interest.
This security was rated as Ba2 by Moody’s and BBB- by S&P at the date of its IPO. The Notes are unsecured, subordinated obligations of the company and will rank equally with all existing and future unsecured, subordinated indebtedness of the company. See the IPO prospectus for further information on the debt securities by clicking on the ‘Link to IPO Prospectus’ provided below.
