Post by stripermannh on Apr 6, 2023 23:24:15 GMT
I feel like I'm missing something in my analyses and could use other's opinions. I feel like "it's too good to be true therefore something is wrong".
I own ENBA which I purchased at less than $25/sh . The current price is $25.39sh.
March 10, 2023 -- Enbridge Inc. (Enbridge or the Company) (TSX: ENB) today announced that it will redeem all of its outstanding 6.375% Fixed-to-Floating Rate Subordinated Notes Series 2018-B due 2078 (CUSIP: 29250N 477) (the "Notes") on April 15, 2023.It has been formally announced that ENBA will be recalled on 4/15/2023 at $25.
If it wasn't for the recall I would hold on to this investment for the quarterly interest payments.
It seems like a "no brainer" (too good to be true) to sell now before it's recalled at $25/sh, collect the additional $0.39/sh, and still be able to collect the quarterly interest distribution. (therefore something is wrong)
What am I missing?
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%.