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E Split Corp T.ENS

Alternate Symbol(s):  ENSPF | T.ENS.PR.A

The objective of the Class A shares is to provide holders with non-cumulative monthly cash distributions and the opportunity for capital appreciation through exposure to the portfolio. And The investment objectives for the preferred shares is to provide holders with fixed cumulative preferential quarterly cash distributions and return the original issue price of 10.00 Dollars to holders upon maturity. The Company has a portfolio comprised primarily of common shares of Enbridge Inc. Enbridge, a North American oil and gas pipeline, gas processing and natural gas distribution company the Enbridge Common Shares or the Portfolio and intends to purchase Enbridge Common Shares from time to time in the market or through participation in future public offerings by Enbridge. The Advisor believes that the Company offers investors an opportunity to gain exposure to Enbridge, one of the worlds largest energy infrastructure companies.


TSX:ENS - Post by User

Comment by cttglvron Aug 21, 2024 10:59pm
104 Views
Post# 36191146

RE:Middlefield's next play

RE:Middlefield's next playHi Obscure1. I think I can explain the way the ENS preferreds are trading and why so far above par.

Until July 2023 ENS preferreds were paying 13.125 cents per quarter or 5.3% annually. Most perpetual preferreds like POW, PWF EMA and more were yielding in the mid to high 6% range.

September 2023 the ENS preferred payout was increased to 175 cents per quarter to yield 7%.

Now all of my perpetual preferreds have gained in value and yield about 6% with further rate cuts expected by the BOC. Note perpetuals are still trading 10 to 20% below their historical average.

The ENS preferred yields about 6.6% which although is way above par it is still far below comparable perpetuals. For comparisson ENB.PR.A perpetual yields 6.11%.

It looks like Middlefield can change the payout amount when it suits them. I don't know the logistics about this but if they can increase the distribution they can also cut it.

I still think something stinks with the way ENS is trading. I thought one of the under writers of the last raise got stuck with shares and have been liquidating. Now I don't think so. I think since Middlefield can't do a raise they are using their ATM to issue shares far below par. I may be wrong but this price action of ENS has never happened before. I still have a full position but am not buying more as ENS and Middlefield seem to be playing poker with investors and Middlefield holds all the cards. JMO




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