TC Energy announces consideration of subordinated notes offering by TransCanada Trust

Rhea-AI Summary

TC Energy Corporation (TRP) announced plans for TransCanada Trust to consider an offering of subordinated trust notes, potentially to redeem outstanding Cumulative Redeemable Minimum Rate Reset First Preferred Shares, Series 15. Proceeds will also reduce short-term debt and fund general corporate purposes. There is uncertainty regarding the offering’s completion and terms. The notes are not registered under U.S. securities laws and cannot be sold to U.S. persons. The company emphasizes its commitment to energy delivery across North America.

Positive

• Potential to reduce short-term indebtedness with proceeds from the offering.
• Plans to redeem outstanding preferred shares, improving capital structure.

Negative

• Uncertainty regarding the completion and terms of the offering.
• Notes not registered under U.S. securities laws limits market access.

CALGARY, Alberta, March 02, 2022 (GLOBE NEWSWIRE) -- News Release – TC Energy Corporation (TSX, NYSE: TRP) (TC Energy or the Company) today announced that TransCanada Trust (the Trust), a wholly-owned financing trust subsidiary of TransCanada PipeLines Limited (TCPL), is considering an offering of subordinated trust notes (Trust Notes), guaranteed on a subordinated basis by TCPL, under the Trust's short form base shelf prospectus dated Feb. 26, 2021.

If a successful offering is completed, the Company intends to use the proceeds to redeem its issued and outstanding Cumulative Redeemable Minimum Rate Reset First Preferred Shares, Series 15 (TSX:TRP.PR.K) pursuant to their terms, and pending such redemption, to reduce short-term indebtedness as well as for general corporate purposes. There is no certainty that the Trust will ultimately complete the offering being considered or as to the timing or terms on which such an offering might be completed.

This news release does not constitute an offer to sell or the solicitation of an offer to buy the Trust Notes. The Trust Notes have not been approved or disapproved by any regulatory authority. The Trust Notes have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities law, and may not be offered or sold within the United States or to, or for the account or benefit of, United States persons.

About TC Energy
We 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 liquids pipelines, along with power generation and storage facilities, wherever life happens — we’re there. Guided by our core values of safety, innovation, responsibility, collaboration and integrity, our 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 most recent Quarterly Report to Shareholders and 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.

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Media Inquiries:
Jaimie Harding / Suzanne Wilton
media@tcenergy.com
403-920-7859 or 800-608-7859

Investor & Analyst Inquiries:
David Moneta / Gavin Wylie / Hunter Mau
investor_relations@tcenergy.com
403-920-7911 or 800-361-6522

PDF available: http://ml.globenewswire.com/Resource/Download/190a1755-17dd-42d1-b2b4-69b2407ea5ca

FAQ

What is TC Energy's plan for subordinated trust notes?

TC Energy is considering an offering of subordinated trust notes through TransCanada Trust to redeem outstanding preferred shares and reduce short-term debt.

What are the intended uses of proceeds from the Trust Notes offering?

The proceeds will be used to redeem preferred shares, reduce short-term indebtedness, and for general corporate purposes.

What is the stock symbol for TC Energy?

TC Energy's stock symbol is TRP, trading on both TSX and NYSE.

Are the Trust Notes registered under U.S. securities laws?

No, the Trust Notes have not been and will not be registered under U.S. securities laws and cannot be offered to U.S. persons.

What risks are associated with TC Energy's forward-looking statements?

Forward-looking statements are subject to significant risks and uncertainties that may cause actual results to differ from those anticipated.