03:47 PM EDT, 08/02/2024 (MT Newswires) -- Enbridge ( ENB ) on Friday said it will not exercise its right to redeem its outstanding Cumulative Redeemable Preference Shares, Series 3 (ENB-PR-Y.TO) on Sept. 1.

As a result, the holders of the Series 3 shares have the right to convert all or part of their holdings on a one-for-one basis into Cumulative Redeemable Preference Shares, Series 4.

The foregoing conversion right is subject to the conditions that: if Enbridge ( ENB ) determines there would be less than 1-million Series 3 Shares outstanding after Sept. 1, then all remaining Series 3 Shares will automatically be converted into Series 4 Shares on a one-for-one basis; and alternatively, if Enbridge ( ENB ) determines that there would be less than 1 million Series 4 Shares outstanding after Sept. 1, no Series 3 Shares will be converted into Series 4 Shares.

There are currently 24-million Series 3 Shares outstanding.

Holders of any Series 3 Shares that remain outstanding after Sept. 1, will be entitled to receive quarterly fixed cumulative preferential cash dividends.

The new annual dividend rate applicable to the Series 3 Shares for the five-year period commencing on Sept. 1, to, but excluding, Sept. 1, 2029 will be 5.288% percent, being equal to the five-year Government of Canada bond yield of 2.908% determined as of today plus 2.38% in accordance with the terms of the Series 3 Shares.

Price: 52.41, Change: +0.26, Percent Change: +0.50