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.