TC Energy provides Series 1 & 2 Preferred Shares conversion right
November 21 2019 - 12:00PM
TC Energy Corporation (TSX:TRP) (NYSE:TRP) (TC Energy) announced
today that it does not intend to exercise its right to redeem its
Cumulative Redeemable First Preferred Shares, Series 1 (Series 1
Shares) and Cumulative Redeemable First Preferred Shares, Series 2
(Series 2 Shares) on December 31, 2019. As a result, subject to
certain conditions:
(a) the holders of Series 1 Shares have the right to
choose one of the following options with regard to their
shares:
- to retain any or all of their Series 1 Shares and continue to
receive a fixed rate quarterly dividend; or
- to convert, on a one-for-one basis, any or all of their Series
1 Shares into Series 2 Shares and receive a floating rate quarterly
dividend, and
(b) the holders of Series 2 Shares have the right to
choose one of the following options with regard to their
shares:
- to retain any or all of their Series 2 Shares and continue to
receive a floating rate quarterly dividend; or
- to convert, on a one-for-one basis, any or all of their Series
2 Shares into Series 1 Shares and receive fixed rate quarterly
dividend.
The dividend rate applicable to the Series 1 Shares for the
five-year period commencing on December 31, 2019 to, but excluding,
December 31, 2024 will equal the Government of Canada five-year
bond yield on December 2, 2019 plus 1.92 per cent. The dividend
rate applicable to the Series 2 Shares for the three-month period
commencing on December 31, 2019 to, but excluding, March 30, 2020
will equal the Government of Canada 90-day treasury bill rate on
December 2, 2019 plus 1.92 per cent. Both rates will be calculated
according to the terms of the prospectus supplement dated September
22, 2009 and announced by way of a news release on December 2,
2019.
Beneficial owners of Series 1 Shares and Series 2 Shares who
want to exercise their right of conversion should communicate as
soon as possible with their broker or other nominee and ensure that
they follow their instructions in order to meet the deadline to
exercise such right, which is 5 p.m. (EDT) on December 16, 2019.
Any notices received after this deadline will not be valid. As
such, it is recommended that this be done well in advance of the
deadline in order to provide the broker or other nominee with time
to complete the necessary steps.
The conversion of Series 1 Shares are subject to the conditions
that: (i) if TC Energy determines that there would be less than one
million Series 1 Shares outstanding after December 31, 2019, then
all remaining Series 1 Shares will automatically be converted into
Series 2 Shares on a one-for-one basis on December 31, 2019, and
(ii) alternatively, if TC Energy determines that there would
be less than one million Series 2 Shares outstanding after December
31, 2019, no Series 1 Shares will be converted into Series 2
Shares.
The conversion of Series 2 Shares are subject to the conditions
that: (i) if TC Energy determines that there would be less than one
million Series 1 Shares outstanding after December 31, 2019, then
no Series 2 Shares will be converted into Series 1 Shares, and (ii)
alternatively, if TC Energy determines that there would be less
than one million Series 2 Shares outstanding after December 31,
2019, then all of the remaining outstanding Series 2 Shares will
automatically be converted into Series 1 Shares on a one-for-one
basis on December 31, 2019. In either case, TC Energy will issue a
news release to that effect no later than December 23, 2019.
Beneficial owners of Series 1 Shares who do not provide notice
or communicate with their broker or other nominee by the deadline
will retain their Series 1 Shares and receive the new annual fixed
dividend rate applicable to the Series 1 Shares. Beneficial owners
of Series 2 Shares who do not provide notice or communicate with
their broker or other nominee by the deadline will retain their
Series 2 Shares and receive the floating rate quarterly dividend
applicable to the Series 2 Shares, subject to the conditions stated
above.
Holders of Series 1 Shares and Series 2 Shares will have the
opportunity to convert their shares again on December 31, 2024 and
every five years thereafter as long as the shares remain
outstanding. For more information on the terms of, and risks
associated with an investment in Series 1 Shares and Series 2
Shares, please see the Corporation’s prospectus supplement dated
September 22, 2009 which is available on sedar.com or on the
Corporation's website.
TC Energy and its affiliates deliver the energy millions of
people rely on every day to power their lives and fuel industry.
Focused on what we do and how we do it, we are guided by core
values of safety, responsibility, collaboration and integrity. Our
more than 7,000 people are committed to sustainably developing and
operating pipeline, power generation and energy storage facilities
across Canada, the U.S. and Mexico. TC Energy’s common shares trade
on the Toronto (TSX) and New York (NYSE) stock exchanges under the
symbol TRP. Visit TCEnergy.com and connect with us on social media
to learn more.
FORWARD-LOOKING INFORMATIONThis release
contains certain information that is forward-looking and is subject
to important risks and uncertainties (such statements are usually
accompanied by words such as "anticipate", "expect", "believe",
"may", "will", "should", "estimate", "intend" or other similar
words). Forward-looking statements in this document are intended to
provide TC Energy security holders and potential investors with
information regarding TC Energy and its subsidiaries, including
management's assessment of TC Energy's and its subsidiaries' future
plans and financial outlook. All forward-looking statements reflect
TC Energy's beliefs and assumptions based on information available
at the time the statements were made and as such are not guarantees
of future performance. As actual results could vary significantly
from the forward-looking information, you should not put undue
reliance on forward-looking information and should not use
future-oriented information or financial outlooks for anything
other than their intended purpose. We do not update our
forward-looking information due to new information or future
events, unless we are required to by law. For additional
information on the assumptions made, and the risks and
uncertainties which could cause actual results to differ from the
anticipated results, refer to the Quarterly Report to Shareholders
dated July 31, 2019 and the 2018 Annual Report filed under TC
Energy's profile on SEDAR at www.sedar.com and with the U.S.
Securities and Exchange Commission at www.sec.gov.
Media Enquiries:Jaimie Harding / Hejdi
Carlsen403.920.7859 or 800.608.7859
Investor & Analyst Enquiries:David Moneta /
Duane Alexander403.920.7911 or 800.361.6522
PDF
available: http://ml.globenewswire.com/Resource/Download/283f3865-698e-42ce-9e57-b3ceda031379
TC Energy (NYSE:TRP)
Historical Stock Chart
From Mar 2024 to Apr 2024
TC Energy (NYSE:TRP)
Historical Stock Chart
From Apr 2023 to Apr 2024