ENBA Profile
Enbridge Inc. 6.375% Fixed-to-Floating Rate Subordinated Notes due 2078 (ENBA) is a debt security issued by Enbridge, a leading North American energy infrastructure company that operates the world's longest crude oil and liquids transportation system.
The ENBA notes were issued on May 18, 2018, and have an aggregate principal amount of $1.25 billion. The notes are senior unsecured obligations of Enbridge and are subordinated to its senior debt. ENBA has a fixed interest rate of 6.375% per annum until June 1, 2028, after which the interest rate will reset quarterly to the three-month LIBOR plus a spread of 3.215%. The notes are callable at any time on or after June 1, 2023, at par plus accrued and unpaid interest.
The ENBA notes are rated BBB- by Standard & Poor's and Baa2 by Moody's, indicating a moderate credit risk. The notes offer a higher yield compared to investment-grade bonds, reflecting the subordinated status of the debt and the potential risks associated with the energy infrastructure sector.
Investors who are bullish on the prospects of Enbridge's long-term growth and the stability of its cash flows may find the ENBA notes attractive, particularly given the relatively high yield offered. However, investors should be aware of the risks associated with the energy sector, such as regulatory changes and environmental concerns, which could negatively impact the company's operations and financial performance.
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