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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 Nov 12, 2024 6:01pm
54 Views
Post# 36309132

RE:RE:Heads up

RE:RE:Heads upObscure has created excellent posts in the past detailing the fact that Middlefield does not take in enough income from Enbridge dividends to fully fund the distributions. I doubt they can make up the difference by just writing call options.

One other item comes to mind that would put Middlefield in an even larger deficit position when it comes to paying distributions.

Middlefield increased the quarterly distribution on the preferred ENS.A shares by 4.375 cents per share starting early this year. From what I see in the first quarter financial report there are 24,387,082 ENS.PR.A shares outstanding. This would require Middlefield to pay out an additional $1,066,934 per quarter to the ENS.PR.A holders over what they were previously paying.

I'm not sure how big a deal this is but since Middlefield is already in a deficit position, unable to do overnight offerings and paying even larger distributions in 2024 where else are they getting the money??? It would have to be the ATM and that is what continues to depress the share price of ENS commons.


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