ALA.PR.G : Some Conversion To FloatingReset

An eMailed inquiry to AltaGas Ltd. regarding the recently expired conversion option for ALA.PR.G resulted in the following reply (in part):

We will announce the full details of the election on September 30th, but at this time we can confirm that there were enough Series G shares tendered for conversion into floating rate Series H shares and therefore Series H shares will be issued on September 30th.

ALA.PR.G is a FixedReset, 4.75%+306, that commenced trading 2014-7-3 after being announced 2014-6-23. Notice of extension was announced 2019-8-29. The issue will reset at 4.242% effective September 30, 2019. I recommended against conversion. The issue is tracked by HIMIPref™ but relegated to the Scraps subindex on credit concerns. In December, 2018, the issue was downgraded to Pfd-3(low) by DBRS and to P-3 by S&P.

Well! This is interesting news – there hasn’t been a new FloatingReset issue since ENB.PR.B partially converted in May, 2017 although there was some minor adjustment with the DC.PR.B / DC.PR.D conversion earlier this month.

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