CALGARY, Nov. 28, 2018 /CNW/ - AltaGas Ltd. ("AltaGas")
(TSX: ALA) announced today that it does not intend to exercise its
right to redeem any or all of its currently outstanding Cumulative
Redeemable Five-Year Rate Reset Preferred Shares, Series E (the
"Series E Shares") (TSX: ALA.PR.E) on December 31, 2018 (the "Conversion Date").
As a result, subject to certain conditions, the holders of the
Series E Shares have the right to convert all or part of their
Series E Shares on a one-for-one basis into Cumulative Redeemable
Floating Rate Preferred Shares, Series F (the "Series F Shares") on
the Conversion Date. Holders who do not exercise their right to
convert their Series E Shares into Series F Shares will, subject to
automatic conversion in the circumstances described below, retain
their Series E Shares.
The foregoing conversion right is subject to the conditions
that: (i) if AltaGas determines that after giving effect to all
conversions there would be less than 1,000,000 Series E Shares
outstanding after the Conversion Date, then all remaining Series E
Shares will automatically be converted into Series F Shares on a
one-for-one basis on the Conversion Date; and (ii) if AltaGas
determines that after giving effect to all conversions there would
be less than 1,000,000 Series F Shares outstanding after the
Conversion Date, no Series E Shares will be converted into Series F
Shares. There are currently 8,000,000 Series E Shares
outstanding.
With respect to any Series E Shares that remain outstanding
after the Conversion Date, holders shall be entitled to receive, as
and when declared by the Board of Directors of AltaGas, fixed
cumulative preferential cash dividends, payable quarterly. The new
annual dividend rate applicable to the Series E Shares for the
five-year period commencing on and including December 31, 2018 to, but excluding, December 31, 2023 will be set and announced on
December 3, 2018, being equal to the
sum of the five-year Government of Canada bond yield as of such date plus 3.17
percent.
With respect to any Series F Shares that may be issued on the
Conversion Date, holders shall be entitled to receive, as and when
declared by the Board of Directors of AltaGas, quarterly floating
rate cumulative preferential cash dividends. The dividend rate
applicable to the Series F Shares for the three-month floating rate
period commencing on and including December
31, 2018 to, but excluding, March 31,
2019 will be set and announced on December 3, 2018, being equal to the sum of the
annual rate of interest for the most recent auction of 90 day
Government of Canada treasury
bills plus 3.17 percent (the "Floating Quarterly Dividend
Rate"). The Floating Quarterly Dividend Rate will be reset
every quarter.
Beneficial holders of Series E Shares who wish to exercise their
right of conversion should instruct their broker or other nominee
to exercise such right during the conversion period, which runs
from December 1, 2018 until
5:00 p.m. (Toronto time) on December 17, 2018. It is recommended that this be
done well in advance of the deadline in order to provide the broker
or other intermediary with time to complete the necessary steps.
Any notices received after this deadline will not be valid.
Subject to the terms and conditions of the Series E Shares and
Series F Shares and AltaGas' right to redeem such shares, holders
of the Series E Shares and the Series F Shares will have the
opportunity to convert their shares again on December 31, 2023, and every five years
thereafter as long as the Series E Shares and Series F Shares
remain outstanding.
AltaGas is an energy infrastructure company with a focus on
natural gas, power and regulated utilities. AltaGas creates value
by growing and optimizing its energy infrastructure, including a
focus on clean energy sources. For more information
visit: www.altagas.ca.
This news release contains forward-looking statements. When
used in this news release, the words "may", "would", "could",
"will", "intend", "plan", "anticipate", "believe", "seek",
"propose", "estimate", "expect", and similar expressions, as they
relate to AltaGas or an affiliate of AltaGas, are intended to
identify forward-looking statements. In particular, this news
release contains forward-looking statements with respect to, among
other things, the payment of dividends, right to convert Series E
Shares and Series F Shares and on what terms and the timing and
manner of determination of the interest rate(s) applicable in
respect thereof, business objectives, expected growth, results of
operations, performance, business projects and opportunities and
financial results. These statements involve known and unknown
risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in
such forward-looking statements. Such statements reflect AltaGas'
current views with respect to future events based on certain
material factors and assumptions and are subject to certain risks
and uncertainties, including without limitation, changes in market
competition, governmental or regulatory developments, general
economic conditions and other factors set out in AltaGas' public
disclosure documents. Many factors could cause AltaGas' actual
results, performance or achievements to vary from those described
in this news release, including without limitation those listed
above. These factors should not be construed as exhaustive. Should
one or more of these risks or uncertainties materialize, or should
assumptions underlying forward-looking statements prove incorrect,
actual results may vary materially from those described in this
news release as intended, planned, anticipated, believed, sought,
proposed, estimated or expected, and such forward-looking
statements included in, or incorporated by reference in this news
release, should not be unduly relied upon. Such statements speak
only as of the date of this news release. AltaGas does not intend,
and does not assume any obligation, to update these forward-looking
statements. The forward-looking statements contained in this news
release are expressly qualified by this cautionary
statement.
SOURCE AltaGas Ltd.