With respect to any Series 14 Shares that may be issued on June 1, 2020, 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 new annual dividend rate applicable to the Series 13 Shares for the five-year period commencing on Jto, but excluding, Jwill be 3.043 percent, being equal to the five-year Government of Canada bond yield of 0.383 percent determined as of today plus 2.66 percent in accordance with the terms of the Series 13 Shares. With respect to any Series 13 Shares that remain outstanding after June 1, 2020, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. There are currently 14,000,000 Series 13 Shares outstanding. The foregoing conversion right is subject to the conditions that: (i) if Enbridge determines that there would be less than 1,000,000 Series 13 Shares outstanding after June 1, 2020, then all remaining Series 13 Shares will automatically be converted into Series 14 Shares on a one-for-one basis on Jand (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series 14 Shares outstanding after June 1, 2020, no Series 13 Shares will be converted into Series 14 Shares. Holders who do not exercise their right to convert their Series 13 Shares into Series 14 Shares will retain their Series 13 Shares.
As a result, subject to certain conditions, the holders of the Series 13 Shares have the right to convert all or part of their Series 13 Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series 14 of Enbridge (Series 14 Shares) on June 1, 2020. (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 13 (Series 13 Shares) (TSX: ENB.PF.E) on June 1, 2020.