Distribution Record Date Set for South Bow Corporation
CALGARY, Alberta — TC Energy Corporation (TSX, NYSE: TRP) has announced an important milestone regarding the spinoff of its Liquids Pipelines business into South Bow Corporation. The record date for distributions has been established as September 25, 2024. This arrangement allows TC Energy shareholders to retain their current holdings while also gaining a proportional interest in South Bow, thereby enhancing their overall investment portfolio.
Important Dates and Trading Details
The spinoff, which has received the necessary tax rulings and court approvals, is expected to take effect on October 1, 2024. During this transition, both the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE) will begin "due bill" trading for TC Energy Common Shares, starting from the record date and continuing until the spinoff becomes effective.
Due Bill Trading Overview
Under this arrangement, TC Energy Common Shares will be traded under the ticker symbol TRP. Additionally, South Bow’s common shares will also be introduced to the market, with the expected trading symbol SOBO on the TSX. It is important to note that the NYSE will not participate in “if, as and when issued” trading for these shares.
Regular Trading Expected to Begin
Regular trading for both TC Energy and South Bow shares is anticipated to start on October 2, 2024. Investors can expect a smooth transition to regular trading, with TC Energy shares resuming under the symbol TRP, while South Bow shares will trade as SOBO. Full allocation details will be provided in October.
Plans for Dividend Declarations
Both TC Energy and South Bow plan to declare independent dividends that reflect their respective contributions prior to the spinoff. These declarations are expected around November 7, 2024, with payouts scheduled for January 31, 2025, pending approval from each company's Board of Directors.
Corporate Update from South Bow
As part of the spinoff, South Bow will conduct a corporate update session to provide shareholders and potential investors with insights into the company's operational strategies and market positioning. This initiative underscores South Bow's commitment to maintaining strong connections between Canadian crude oil supply and U.S. refining markets.
Introducing South Bow
South Bow is set to become a significant player in the liquids pipelines sector, operating an extensive infrastructure of approximately 4,900 kilometers. This strategic positioning will ensure reliable oil transportation to high-demand regions across the U.S. Midwest and Gulf Coast. With a focus on disciplined capital investment and solid dividend policies, South Bow aims to create lasting value for its shareholders.
About TC Energy and South Bow
TC Energy has established itself as a leader in energy management, employing over 7,000 professionals dedicated to addressing the unique challenges of energy transitions. The spinoff into South Bow not only provides shareholders with greater access to impacts but also enhances operational efficiencies across its pipeline network. Investing in South Bow aligns investors with emerging trends in energy supply and demand.
Contact Information for Inquiries
For media inquiries regarding this announcement, please reach out to Media Relations at media@tcenergy.com, or call 403-920-7859. Investors seeking additional 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 for the distribution related to the spinoff is September 25, 2024.
When will South Bow shares begin trading?
South Bow shares are expected to start regular trading on October 2, 2024, under the ticker symbol SOBO.
What dividend announcements can shareholders expect?
Shareholders can expect independent dividends to 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?
The corporate update will be broadcast live, providing insights into South Bow’s strategies. The exact timing will be announced shortly.
Who can I contact for more information?
For media inquiries, please contact Media Relations at media@tcenergy.com. For investor information, reach out via investor_relations@tcenergy.com.
