TC Energy Corporation (TC Energy) has announced that 401 590 of its 8 533 405 fixed rate Cumulative Redeemable First Preferred Shares, Series 3 (Series 3 Shares) have been elected for conversion on 30 June 2020, on a one-for-one basis, into floating rate Cumulative Redeemable First Preferred Shares, Series 4 (Series 4 Shares); and 1 865 362 of its 5 466 595 Series 4 Shares have been elected for conversion, on a one-for-one basis, into Series 3 Shares.
As a result of the conversions, TC Energy will have 9 997 177 Series 3 Shares and 4 002 823 Series 4 Shares issued and outstanding. The Series 3 Shares and Series 4 Shares will continue to be listed on the Toronto Stock Exchange (TSX) under the symbols TRP.PR.B and TRP.PR.H, respectively.
The Series 3 Shares will pay on a quarterly basis for the five-year period beginning on 30 June 2020, as and when declared by the Board of Directors of TC Energy, a fixed dividend at an annualised rate of 1.694%.
The Series 4 Shares will pay a floating rate quarterly dividend for the five-year period beginning on 30 June 2020, as and when declared by the Board of Directors of TC Energy. The dividend rate for the Series 4 Shares for the first quarterly floating rate period commencing 30 June 2020 to but excluding 30 September 2020 is 1.535% and will be reset every quarter.
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.
Read the article online at: https://www.worldpipelines.com/business-news/24062020/tc-energy-provides-update-on-series-3-and-4-preferred-shares/
