Request Help from Experts ATM vs Bought Deal SharesWondering if the experts can enlighten me.
On May 16, 2024, Enbridge Inc. (“Enbridge”) filed Canadian and US prospectus supplements to establish an "at-the-market" distribution program (the "ATM Program"). Pursuant to the ATM Program, Enbridge may issue and sell up to C$2.75 billion (or the U.S. dollar equivalent) of its common shares from treasury to the public from time to time.
This is common knowledge and we have heard nothing for 2 months about shares being issued.
CALGARY, AB, Sept. 5, 2023 /CNW/ - Enbridge Inc. Underwriters have agreed to purchase, on a bought deal basis, 89,490,000 common shares of the Company ("Common Shares") for aggregate gross proceeds of CDN$4 billion at an offering price of CDN$44.70 per Common Share (the "Offering").
This was the "bought deal" offering that surprised the markets last year.
Am I crazy in thinking that maybe Enbridge has already issued most of the shares they need through the ATM program? They've had 2 months to sell into the market. Could this be the reason the share price has been fairly aneimic with good volume? With earnings day coming up August 2 is it possible that they announce they have completed the necessary financing through the ATM program and/or combined with debt? With their debt getting a recent upgrade that should facilitate a lower cost for any debt issuance.
Any constructive comments from our two resident experts would be greatly appreciated.