CALGARY, Dec. 3, 2018 /CNW/ - AltaGas Ltd. ("AltaGas")
(TSX: ALA) announced today reset dividend rates for the currently
outstanding Cumulative Redeemable Five-Year Rate Reset Preferred
Shares, Series E (the "Series E Shares") (TSX: ALA.PR.E) and the
Cumulative Redeemable Floating Rate Preferred Shares, Series F (the
"Series F Shares").
As previously announced by AltaGas on November 28, 2018, AltaGas does not intend to
exercise its right to redeem its Series E Shares 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 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 certain circumstances, retain their Series
E Shares. Holders of Series E Shares should review the prior
press release for further details.
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 5.393 percent, being
equal to the sum of the five-year Government of Canada bond yield determined as of today 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 4.88 percent, 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.
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 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.