TC Energy provides conversion right and dividend rate notice for Series 1 and 2 preferred shares
TC Energy (TRP) announced it will not redeem its Series 1 and Series 2 Preferred Shares on Dec. 31, 2024. Holders of Series 1 Shares can either retain their shares with a new fixed quarterly dividend rate of 4.939% (until Dec. 31, 2029) or convert to Series 2 Shares with a floating rate of 5.401% (until Mar. 31, 2025). Similarly, Series 2 shareholders can keep their shares at the floating rate or convert to Series 1 Shares. Conversion rights must be exercised by 5 p.m. EST on Dec. 16, 2024. If either series falls below one million shares after conversion, automatic conversion to the other series will occur.
TC Energy (TRP) ha annunciato che non rimborserà le sue Azioni Preferenziali di Serie 1 e Serie 2 il 31 dicembre 2024. I detentori delle Azioni di Serie 1 possono mantenere le loro azioni con un nuovo tasso fisso di dividendo trimestrale del 4,939% (fino al 31 dicembre 2029) o convertirle in Azioni di Serie 2 con un tasso variabile del 5,401% (fino al 31 marzo 2025). Allo stesso modo, gli azionisti di Serie 2 possono mantenere le loro azioni al tasso variabile o convertirle in Azioni di Serie 1. I diritti di conversione devono essere esercitati entro le 17:00 EST del 16 dicembre 2024. Se una delle due serie scende sotto un milione di azioni dopo la conversione, avverrà la conversione automatica nell'altra serie.
TC Energy (TRP) anunció que no redimirá sus Acciones Preferentes de Serie 1 y Serie 2 el 31 de diciembre de 2024. Los tenedores de Acciones de Serie 1 pueden optar por conservar sus acciones con una nueva tasa fija de dividendo trimestral del 4,939% (hasta el 31 de diciembre de 2029) o convertirlas en Acciones de Serie 2 con una tasa flotante del 5,401% (hasta el 31 de marzo de 2025). De manera similar, los accionistas de la Serie 2 pueden mantener sus acciones a la tasa flotante o convertirlas en Acciones de Serie 1. Los derechos de conversión deben ejercerse antes de las 5 p.m. EST del 16 de diciembre de 2024. Si cualquiera de las series cae por debajo de un millón de acciones después de la conversión, se producirá la conversión automática a la otra serie.
TC Energy (TRP)는 2024년 12월 31일에 시리즈 1 및 시리즈 2 우선주를 상환하지 않겠다고 발표했습니다. 시리즈 1 주주의 경우, 2029년 12월 31일까지 새로운 고정 분기 배당률 4.939%로 주식을 보유하거나 2025년 3월 31일까지 변동 금리 5.401%로 시리즈 2 주식으로 전환할 수 있습니다. 마찬가지로 시리즈 2 주주도 변동 금리로 주식을 유지하거나 시리즈 1 주식으로 전환할 수 있습니다. 전환권은 2024년 12월 16일 오후 5시 EST까지 행사해야 합니다. 전환 후 어느 한 시리즈의 주식이 백만 주 이하로 떨어지면 자동으로 다른 시리즈로 전환됩니다.
TC Energy (TRP) a annoncé qu'elle ne rachètera pas ses actions privilégiées de série 1 et de série 2 le 31 décembre 2024. Les détenteurs d'actions de série 1 peuvent soit conserver leurs actions avec un nouveau taux de dividende trimestriel fixe de 4,939% (jusqu'au 31 décembre 2029), soit les convertir en actions de série 2 avec un taux flottant de 5,401% (jusqu'au 31 mars 2025). De même, les actionnaires de série 2 peuvent conserver leurs actions au taux flottant ou les convertir en actions de série 1. Les droits de conversion doivent être exercés avant 17h00 EST le 16 décembre 2024. Si l'une des séries tombe en dessous d'un million d'actions après conversion, une conversion automatique dans l'autre série aura lieu.
TC Energy (TRP) hat bekannt gegeben, dass die Rücknahme ihrer Vorzugsaktien der Serie 1 und Serie 2 am 31. Dezember 2024 nicht erfolgen wird. Inhaber von Serien-1-Aktien können entweder ihre Aktien mit einem neuen festen vierteljährlichen Dividendenzins von 4,939% (bis zum 31. Dezember 2029) behalten oder in Serien-2-Aktien mit einem variablen Zinssatz von 5,401% (bis zum 31. März 2025) umwandeln. Analog können Inhaber von Serien-2-Aktien ihre Aktien zum variablen Zinssatz behalten oder in Serien-1-Aktien umwandeln. Die Umwandlungsrechte müssen bis 17:00 Uhr EST am 16. Dezember 2024 ausgeübt werden. Sollte eine der Serien nach der Umwandlung unter eine Million Aktien fallen, erfolgt eine automatische Umwandlung in die andere Serie.
- Fixed dividend rate of 4.939% offered for Series 1 shares through 2029
- Attractive floating rate of 5.401% for Series 2 shares (Q1 2025)
- Flexibility provided to shareholders with conversion options
- None.
CALGARY, Alberta, Dec. 02, 2024 (GLOBE NEWSWIRE) -- News Release – TC Energy Corporation (TSX:TRP) (NYSE:TRP) (TC Energy) today announced 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 Dec. 31, 2024. 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:
1. to retain any or all of their Series 1 Shares and continue to receive a fixed rate quarterly dividend; or
2. 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:
1. to retain any or all of their Series 2 Shares and continue to receive a floating rate quarterly dividend; or
2. to convert, on a one-for-one basis, any or all of their Series 2 Shares into Series 1 Shares and receive a fixed rate quarterly dividend.
Should a holder of Series 1 Shares choose to retain their shares, such shareholders will receive the new annual fixed dividend rate applicable to Series 1 Shares of 4.939 per cent for the five-year period commencing Dec. 31, 2024 to, but excluding, Dec. 31, 2029. Should a holder of Series 1 Shares choose to convert their shares to Series 2 Shares, holders of Series 2 Shares will receive the floating quarterly dividend rate applicable to the Series 2 Shares of 5.401 per cent for the three-month period commencing Dec. 31, 2024 to, but excluding, Mar. 31, 2025. The floating dividend rate will be reset every quarter.
Should a holder of Series 2 Shares choose to retain their shares, such shareholders will receive the floating quarterly dividend rate applicable to Series 2 Shares of 5.401 per cent for the three-month period commencing Dec. 31, 2024 to, but excluding, Mar. 31, 2025. The floating dividend rate will be reset every quarter. Should a holder of Series 2 Shares choose to convert their shares to Series 1 Shares, holders of Series 1 Shares will receive the new fixed quarterly dividend rate applicable to the Series 1 Shares of 4.939 per cent for the five-year period commencing Dec. 31, 2024 to, but excluding, Dec. 31, 2029.
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. (EST) on Dec. 16, 2024. 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 1 or Series 2 Shares who do not provide notice or communicate with their broker or other nominee by the deadline will retain their respective Series 1 Shares or Series 2 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 1 Shares outstanding after Dec. 31, 2024, then all remaining Series 1 Shares will automatically be converted into Series 2 Shares on a one-for-one basis on Dec. 31, 2024, and (ii) if TC Energy determines that there would be less than one million Series 2 Shares outstanding after Dec. 31, 2024, then all of the remaining outstanding Series 2 Shares will automatically be converted into Series 1 Shares on a one-for-one basis on Dec. 31, 2024. In either case, TC Energy will issue a news release to that effect no later than Dec. 23, 2024.
Holders of Series 1 Shares and Series 2 Shares will have the opportunity to convert their shares again on Dec. 31, 2029 and in every fifth year thereafter as long as the shares remain outstanding. For more information on the terms of, and risks associated with an investment in the Series 1 Shares and the Series 2 Shares, please see the prospectus supplement dated Sept. 22, 2009 which is available on sedarplus.ca or on our website.
About TC Energy
We’re a team of 6,500+ energy problem solvers connecting the world to the energy it needs. Our extensive network of natural gas infrastructure assets is one-of-a-kind. We seamlessly move, generate and store energy and deliver it to where it is needed most, to homes and businesses in North America and across the globe through LNG exports. Our natural gas assets are complemented by our strategic ownership and low-risk investments in power generation.
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.sedarplus.ca and with the U.S. Securities and Exchange Commission at www.sec.gov.
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Media Inquiries:
Media Relations
media@tcenergy.com
403-920-7859 or 800-608-7859
Investor & Analyst Inquiries:
Gavin Wylie / Hunter Mau
investor_relations@tcenergy.com
403-920-7911 or 800-361-6522
PDF available: http://ml.globenewswire.com/Resource/Download/fea6dd55-b1d1-43c3-8961-355750b2e549
FAQ
What are the new dividend rates for TC Energy (TRP) Series 1 and 2 preferred shares?
When is the deadline to convert TC Energy (TRP) Series 1 and 2 preferred shares?
What happens if TC Energy (TRP) preferred share series falls below 1 million shares?
