Mr. David Moneta reports
TC ENERGY PROVIDES SERIES 9 PREFERRED SHARES CONVERSION RIGHT AND DIVIDEND RATE NOTICE
TC Energy Corp. does not intend to exercise its right to redeem its cumulative redeemable first preferred shares, Series 9, on Oct. 30, 2019. As a result, subject to certain conditions, the holders of Series 9 shares have the right to choose one of the following options with regard to their shares:
To retain any or all of their Series 9 shares and continue to receive a fixed-rate quarterly dividend;
To convert, on a one-for-one basis, any or all of their Series 9 shares into cumulative redeemable first preferred shares, Series 10, of TC Energy and receive a floating-rate quarterly dividend.
The dividend rate applicable to the Series 9 shares for the five-year period commencing on Oct. 30, 2019, to, but excluding, Oct. 30, 2024, will equal the government of Canada five-year bond yield on Oct. 1, 2019, plus 2.35 per cent. The dividend rate applicable to the Series 10 shares for the three-month period commencing on Oct. 30, 2019, to, but excluding, Jan. 30, 2020, will equal the government of Canada 90-day treasury bill rate on Oct. 1, 2019, plus 2.35 per cent. Both rates will be calculated according to the terms of the prospectus supplement dated Jan. 13, 2014, and announced by way of a news release on Oct. 1, 2019.
Beneficial owners of Series 9 shares who want to exercise their right of conversion should communicate as soon as possible with their broker or other nominee and ensure that they follow their instructions in order to meet the deadline to exercise such right, which is 5 p.m. ET on Oct. 15, 2019. Any notices received after this deadline will not be valid. As such, it is recommended that this be done well in advance of the deadline in order to provide the broker or other nominee with time to complete the necessary steps.
The foregoing conversions are subject to the conditions that: (i) if TC Energy determines that there would be less than one million Series 9 shares outstanding after Oct. 30, 2019, then all remaining Series 9 shares will automatically be converted into Series 10 shares on a one-for-one basis on Oct. 30, 2019; and (ii) alternatively, if TC Energy determines that there would be less than one million Series 10 shares outstanding after Oct. 30, 2019, no Series 9 shares will be converted into Series 10 shares. In either case, TC Energy will issue a news release to that effect no later than Oct. 23, 2019.
Beneficial owners of Series 9 shares who do not provide notice or communicate with their broker or other nominee by the deadline will retain their Series 9 shares and receive the new annual fixed dividend rate applicable to the Series 9 shares, subject to the conditions stated above.
Holders of the Series 9 shares and the Series 10 shares will have the opportunity to convert their shares again on Oct. 30, 2024, and every five years thereafter as long as the shares remain outstanding.
For more information on the terms of, as well as risks associated with, an investment in the Series 9 shares and the Series 10 shares, please see the corporation's prospectus supplement dated Jan. 13, 2014, which is available on SEDAR or at the corporation's website.
About TC Energy Corp.
TC Energy and its affiliates deliver the energy millions of people rely on every day to power their lives and fuel industry. The company's more than 7,000 people are committed to sustainably developing and operating pipeline, power generation and energy storage facilities across Canada, the United States and Mexico.
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