CALGARY,
AB, Sept. 3, 2024 /CNW/ - AltaGas Ltd.
("AltaGas" or the "Company") (TSX: ALA) is providing updated
and final pricing for the reset rates on its currently outstanding
Cumulative Redeemable Five-Year Rate Reset Preferred Shares, Series
G (the "Series G Shares") (TSX: ALA.PR.G) and the Cumulative
Redeemable Floating Rate Preferred Shares, Series H (the "Series H
Shares") (TSX: ALA.PR.H) as per the prospectus' dated June 25, 2014. As disclosed in AltaGas'
August 30, 2024 News Release, the
Company does not intend to exercise its right to redeem any or all
of the currently outstanding Series G or Series H preferred shares
on September 30, 2024 (the
"Conversion Date").
As a result, subject to certain conditions, the holders of the
Series G Shares have the right to convert all or part of their
Series G Shares on a one-for-one basis into Series H Shares on the
Conversion Date. Holders who do not exercise their right to convert
their Series G Shares into Series H Shares will, subject to
automatic conversion in the circumstances described below, retain
their Series G Shares. In addition, on the Conversion Date the
holders of the Series H Shares have the right to convert all or
part of their Series H Shares on a one-for-one basis into Series G
Shares. Holders who do not exercise their right to convert their
Series H Shares into Series G Shares will, subject to automatic
conversion in the circumstances described below, retain their
Series H Shares.
With respect to any Series G Shares that are outstanding after
the Conversion Date, holders shall be entitled to receive, as and
when declared by the Board of Directors of AltaGas, fixed
cumulative preferential cash dividends, payable quarterly. The new
annual dividend rate applicable to the Series G Shares for the
five-year period commencing on and including September 30, 2024 to, but excluding September 30, 2029, will be 6.017 percent. The
new dividend rate is equal to the five-year Government of
Canada bond yield of 2.957 percent
(determined as of today's final pricing) plus 3.060 percent. This
dividend rate is slightly below the estimated dividend rate that
was disclosed on August 30, 2024, to
reflect the modest decrease in the five-year Government of
Canada bond yield.
With respect to any Series H Shares that are outstanding after
the Conversion Date, holders shall be entitled to receive, as and
when declared by the Board of Directors of AltaGas, quarterly
floating rate cumulative preferential cash dividends. The dividend
rate applicable to the Series H Shares for the three-month floating
rate period commencing on and including September 30, 2024 to, but excluding December 31, 2024, will be 7.265 percent (the
"Floating Quarterly Dividend Rate"). This dividend rate is equal to
the annual rate of interest for the most recent auction of 90-day
Government of Canada treasury
bills of 4.205 percent plus 3.060 percent. This dividend rate is
unchanged from the rate disclosed in the August 30, 2024 News Release. The Floating
Quarterly Dividend Rate will be reset every quarter.
AltaGas reminds the beneficial holders of Series G Shares and
Series H Shares who wish to exercise their right of conversion to
do so during the updated conversion period from August 31, 2024 to September 13, 2024 until 5:00 pm Eastern Time. As outlined in AltaGas'
August 30, 2024 News Release,
beneficial holders should instruct their broker or other nominee to
exercise such right accordingly.
About AltaGas
AltaGas is a leading North American infrastructure company that
connects customers and markets to affordable and reliable sources
of energy. The Company operates a diversified, lower-risk,
high-growth Energy Infrastructure business that is focused on
delivering stable and growing value for its stakeholders.
For more information visit www.altagas.ca or reach out to one of
the following:
Jon Morrison
Senior
Vice President, Corporate Development and Investor Relations
Jon.Morrison@altagas.ca
Aaron Swanson
Vice
President, Investor Relations
Aaron.Swanson@altagas.ca
Investor Inquiries
1-877-691-7199
investor.relations@altagas.ca
Media Inquiries
1-403-206-2841
media.relations@altagas.ca
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements. When used
in this news release, the words "may", "would", "could", "will",
"intend", "plan", "anticipate", "believe", "seek", "propose",
"estimate", "expect", and similar expressions, as they relate to
AltaGas are intended to identify forward-looking statements. In
particular, this news release contains forward-looking statements
with respect to, among other things, the payment of dividends;
dividend rates; and rights to convert the Series G Shares and the
Series H Shares and Series H Shares to Series G Shares, on what
terms and the timing and manner of determination of the interest
rates applicable in respect thereof. These forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements. Such forward-looking statements reflect AltaGas'
current views with respect to future events based on certain
material factors and assumptions and are subject to certain risks
and uncertainties, including without limitation, changes in market,
governmental or regulatory developments, general economic
conditions and other factors set out in AltaGas' public disclosure
documents. Many factors could cause AltaGas' actual results,
performance or achievements to vary from those described in this
news release, including without limitation those listed above.
These factors should not be construed as exhaustive. Should one or
more of these risks or uncertainties materialize, or should
assumptions underlying forward-looking statements prove incorrect,
actual results may vary materially from those described in this
news release as intended, planned, anticipated, believed, sought,
proposed, estimated or expected, and such forward-looking
statements included in, or incorporated by reference in this news
release, should not be unduly relied upon. Such forward-looking
statements speak only as of the date of this news release. AltaGas
does not intend, and does not assume any obligation, to update
these forward-looking statements. The forward-looking statements
contained in this news release are expressly qualified by this
cautionary statement.
SOURCE AltaGas Ltd.