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

CALGARY, AB, May 2, 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 R (Series R Shares) (TSX: ENB.PR.T) on June 3, 2024. As a result, subject to certain conditions, the holders of the Series R Shares have the right to convert all or part of their Series R Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series S of Enbridge (Series S Shares) on June 3, 2024. Holders who do not exercise their right to convert their Series R Shares into Series S Shares will retain their Series R 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 R Shares outstanding after June 3, 2024, then all remaining Series R Shares will automatically be converted into Series S Shares on a one-for-one basis on June 3, 2024; and (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series S Shares outstanding after June 3, 2024, no Series R Shares will be converted into Series S Shares. There are currently 16,000,000 Series R Shares outstanding.

With respect to any Series R Shares that remain outstanding after June 3, 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 R Shares for the five-year period commencing on June 3, 2024 to, but excluding, June 1, 2029 will be 6.314% percent, being equal to the five-year Government of Canada bond yield of 3.814% percent determined as of today plus 2.50 percent in accordance with the terms of the Series R Shares.

With respect to any Series S Shares that may be issued on June 3, 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 S Shares for the three-month floating rate period commencing on June 3, 2024 to, but excluding, September 1, 2024 will be 1.82951 percent, based on the annual rate on three month Government of Canada treasury bills for the most recent treasury bills auction of 4.94 percent plus 2.50 percent in accordance with the terms of the Series S Shares (the Floating Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will be reset every quarter.

Beneficial holders of Series R Shares who wish to exercise their right of conversion during the conversion period, which runs from May 2, 2024 until 5:00 p.m. (EST) on May 17, 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 R Shares into Series S Shares on June 3, 2024, the annual dividend rate that will apply to any outstanding Series R Shares on June 3, 2024, the quarterly dividend rate that will apply to any outstanding Series S Shares on June 3, 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 R Shares will exercise their right to convert their Series R Shares into Series S 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.

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 or 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 two decades of experience in renewable energy to advance new technologies including wind and solar power, hydrogen, renewable natural gas and carbon capture and storage. We're committed to reducing the carbon footprint of the energy we deliver, and to achieving net zero greenhouse gas emissions by 2050. 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.