TC Energy provides conversion right and dividend rate notice for Series 3 and 4 preferred shares
01 Junio 2020 - 12:14PM
News Release – 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 3 (Series 3 Shares) and Cumulative Redeemable First
Preferred Shares, Series 4 (Series 4 Shares) on June 30, 2020.
As a result, subject to certain conditions:
(a) the holders of Series 3 Shares have
the right to choose one of the following options with regard to
their shares:
- to retain any or all of their
Series 3 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 3 Shares into Series 4 Shares and
receive a floating rate quarterly dividend, and
(b) the holders of Series 4 Shares have
the right to choose one of the following options with regard to
their shares:
- to retain any or all of their
Series 4 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 4 Shares into Series 3 Shares and
receive fixed rate quarterly dividend.
Should a holder of Series 3 Shares choose to
retain their shares, such shareholders will receive the new annual
fixed dividend rate applicable to Series 3 Shares of 1.694% for the
five-year period commencing June 30, 2020 to, but excluding, June
30, 2025. Should a holder of Series 3 Shares choose to convert
their shares to Series 4 Shares, holders of Series 4 Shares will
receive the floating quarterly dividend rate applicable to the
Series 4 Shares of 1.535% for the three-month period commencing
June 30, 2020 to, but excluding, September 30, 2020. The floating
dividend rate will be reset every quarter.
Should a holder of Series 4 Shares choose to
retain their shares, such shareholders will receive the floating
quarterly dividend rate applicable to Series 4 Shares of 1.535% for
the three-month period commencing June 30, 2020 to, but excluding,
September 30, 2020. The floating dividend rate will be reset every
quarter. Should a holder of Series 4 Shares choose to convert their
shares to Series 3 Shares, holders of Series 3 Shares will receive
the new fixed quarterly dividend rate applicable to the Series 3
Shares of 1.694% for the five-year period commencing June 30,
2020 to, but excluding, June 30, 2025.
Beneficial owners of Series 3 Shares and Series
4 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 June 15,
2020. 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.
Beneficial owners of Series 3 or Series 4 Shares
who do not provide notice or communicate with their broker or other
nominee by the deadline will retain their respective Series 3
Shares or Series 4 Shares, as applicable, and receive the new
dividend rate applicable to such shares, subject to the conditions
stated below.
The foregoing conversions are subject to the
conditions that: (i) if TC Energy determines that there would be
less than one million Series 3 Shares outstanding after June 30,
2020, then all remaining Series 3 Shares will automatically be
converted into Series 4 Shares on a one-for-one basis on June 30,
2020, and (ii) if TC Energy determines that there would be
less than one million Series 4 Shares outstanding after June 30,
2020, then all of the remaining outstanding Series 4 Shares will
automatically be converted into Series 3 Shares on a one-for-one
basis on June 30, 2020. In either case, TC Energy will issue a news
release to that effect no later than June 22, 2020.
Holders of Series 3 Shares and Series 4 Shares
will have the opportunity to convert their shares again on June 30,
2025 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 the Series 3 Shares and the Series
4 Shares, please see the prospectus supplement dated March 4, 2010
which is available on sedar.com or on our website.
About TC EnergyWe are a vital part of everyday
life – delivering the energy millions of people rely on to power
their lives in a sustainable way. Thanks to a safe, reliable
network of natural gas and crude oil pipelines, along with power
generation and storage facilities, wherever life happens – we’re
there. Guided by our core values of safety, responsibility,
collaboration and integrity, our more than 7,300 people make a
positive difference in the communities where we operate 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. To learn more,
visit us at TCEnergy.com.
FORWARD-LOOKING INFORMATION
This 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 April 30, 2020 and the 2019 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.
-30-
Media Inquiries:Jaimie Harding / Hejdi
Carlsen403.920.7859 or 800.608.7859
Investor & Analyst Inquiries:David Moneta /
Hunter Mau403.920.7911 or 800.361.6522
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