New Dividend Rates Announced for TC Energy Preferred Shares

TC Energy Announces Important Information Regarding Preferred Shares

In a significant update, TC Energy Corporation, traded on both the TSX and NYSE under the ticker TRP, has shared exciting news about its Cumulative Redeemable First Preferred Shares, Series 1 and Series 2. This announcement comes amidst the company’s ongoing commitment to enhancing shareholder value and providing clear options for investors.

Preferred Shareholder Options Explained

For holders of Series 1 Shares, the company has stated that they are not redeeming their shares, which allows shareholders to choose between two beneficial options. These include:

1. Retaining the Series 1 Shares while earning a consistent fixed quarterly dividend rate.

2. Opting to convert their Series 1 Shares into Series 2 Shares for a floating dividend rate that varies each quarter.

On the other hand, Series 2 Shareholders are also presented with similar attractive choices:

1. Keeping their Series 2 Shares with the option to continue receiving a floating rate dividend.

2. Converting to Series 1 Shares for a fixed quarterly dividend.

New Dividend Rates for Preferred Shares

For those holding Series 1 Shares and choosing to retain them, TC Energy has announced a new fixed annual dividend rate of 4.939 percent. This rate will take effect for the five-year period starting from the end of this year, specifically from December 31, 2024, until December 31, 2029.

Meanwhile, the Series 2 Shareholders will enjoy a floating quarterly dividend rate starting at 5.401 percent for the three months commencing December 31, 2024. This rate will automatically reset every quarter, which adds a layer of flexibility for those investors.

Deadline for Share Conversion

Time is of the essence for shareholders looking to convert their shares. The deadline to communicate decisions regarding conversions is essential: 5 p.m. EST on December 16, 2024. Shareholders must act promptly by reaching out to their brokers to meet this deadline, ensuring the smooth processing of any conversion requests.

Those who miss this window will retain their respective shares and benefit from the announced dividend rates without additional actions needed.

Conditions Affecting Share Conversions

It’s important for shareholders to be aware of the conditions surrounding the conversions. If TC Energy determines that fewer than one million Series 1 Shares remain after the end of 2024, all remaining Series 1 Shares will automatically convert to Series 2 Shares. Conversely, if there are less than one million Series 2 Shares left, they will convert into Series 1 Shares. The company will notify shareholders via a news release beforehand.

Opportunities for Future Conversions

Once the initial conversion process is finished, holders will have further opportunities for conversion every five years. Specifically, shareholders can convert their shares again on December 31, 2029, and on the same date in subsequent five-year intervals as long as these shares continue to be available. This ongoing flexibility reflects TC Energy's intention to keep its investors actively engaged and informed.

About TC Energy Corporation

TC Energy stands as a leader in the energy sector, employing over 6,500 professionals committed to delivering critical energy solutions globally. Their impressive infrastructure network enables them to transport and store energy efficiently, ensuring reliable service to customers. The company combines its natural gas assets with strategic low-risk investments in power generation to demonstrate its innovative approach in a rapidly evolving energy landscape.

Frequently Asked Questions

What options are available for holders of Series 1 Shares?

Holders of Series 1 Shares can either retain their shares for a fixed dividend or convert them to Series 2 Shares for a floating dividend rate.

What are the new dividend rates announced by TC Energy?

The new fixed annual dividend rate for Series 1 Shares is set at 4.939 percent, while the floating rate for Series 2 Shares is initially at 5.401 percent.

How can shareholders exercise their conversion rights?

Shareholders must contact their brokers by 5 p.m. EST on December 16, 2024, to exercise their conversion rights.

What happens if shareholders miss the conversion deadline?

If shareholders do not provide notice by the deadline, they will retain their existing shares and receive the corresponding dividend rate.

Will there be future opportunities to convert shares?

Yes, shareholders will have opportunities to convert shares every five years, starting from December 31, 2029.

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