TC Energy Sets Record Date for Upcoming South Bow Spinoff

Distribution Record Date Established for South Bow Corporation

CALGARY, Alberta — TC Energy Corporation (TSX, NYSE: TRP) has announced a significant milestone regarding its Liquids Pipelines business spinoff into South Bow Corporation. The distribution record date has been set for September 25, 2024. Under this arrangement, TC Energy shareholders will maintain their existing holdings while also receiving a proportional interest in South Bow, enhancing their overall investment portfolio.

Key Dates and Trading Information

The spinoff, which received essential tax rulings and necessary court approvals, is anticipated to take effect on October 1, 2024. During this period, both the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE) will initiate "due bill" trading markets for TC Energy Common Shares, starting from the record date and concluding on the effective date of the spinoff.

Due Bill Trading Setup

As per the arrangement, TC Energy Common Shares will be traded under the designation TRP. Meanwhile, the common shares of South Bow will also be introduced in the trading market. Expected trading designations for South Bow Common Shares are SOBO on the TSX. Notably, the NYSE will not engage in “if, as and when issued” trading for these shares.

Anticipated Regular Trading Initiation

Regular trading for TC Energy and South Bow shares is anticipated to commence on October 2, 2024. Investors can look forward to a seamless switch to regular trading, with TC Energy shares resuming under the symbol TRP, while South Bow shares will trade as SOBO with full allocation details to be clarified during October.

Dividend Declaration Plans

Both TC Energy and South Bow have expressed intentions to declare independent dividends reflecting their respective contributions prior to the spinoff. Anticipated declarations are expected around November 7, 2024, with payout slated for January 31, 2025, subject to each company's Board of Directors' approval.

Corporate Update from South Bow

In conjunction with the spinoff, South Bow will host a corporate update session, aiming to provide shareholders and potential investors with an overview of the company's operational strategies and market positioning. This strategy is a testament to South Bow's commitment to maintaining robust connections between Canadian crude oil supply and U.S. refining markets.

Understanding South Bow

South Bow is poised to emerge as a key player in the liquids pipelines sector, operating an impressive infrastructure of approximately 4,900 kilometers. This strategic positioning will facilitate reliable oil transportation to high-demand areas across the U.S. Midwest and Gulf Coast. The focus on disciplined capital investment and strong dividend policies is set to create sustained value for shareholders.

About TC Energy and South Bow

TC Energy has long established itself as a leader in energy management, employing over 7,000 professionals dedicated to tackling the unique challenges of energy transitions. The spinoff into South Bow not only democratizes access to impacts on shareholders but also enhances operational efficiencies across its pipeline network. Investing in South Bow will align investors with emerging trends in energy demand and supply.

Contact Information for Inquiries

For media inquiries related to this announcement, reach out to Media Relations at media@tcenergy.com, or call 403-920-7859. Investors seeking more information can contact Gavin Wylie or Hunter Mau at investor_relations@tcenergy.com.

Frequently Asked Questions

What is the record date for the South Bow spinoff?

The record date has been set for September 25, 2024, for the distribution related to the spinoff.

When will South Bow shares begin trading?

South Bow shares are expected to commence trading regularly on October 2, 2024, under the symbol SOBO.

What dividend announcements can shareholders expect?

Independent dividends will be declared around November 7, 2024, reflecting the proportional amounts of TC Energy’s dividend.

How can I access the corporate update from South Bow?

Details on the corporate update will be broadcast live, offering insights into South Bow’s strategies. Exact timing will be announced soon.

Who can I contact for more information?

For media inquiries, contact Media Relations at media@tcenergy.com. For investor information, reach out via investor_relations@tcenergy.com.

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