PrefBlog

AltaGas Ltd. has announced (strikethroughs added; see following press release):

that 35,180 of its 8,000,000 Cumulative Redeemable Five-Year Fixed Rate Reset Preferred Shares, Series A (the “Series A Preferred Shares”) (TSX: ALA.PR.A) were tendered for conversion into Cumulative Floating Rate Preferred Shares, Series B (the “Series B Preferred Shares”) (TSX: ALA.PR.B) and that 1,270,639 of its Series B Preferred Shares were tendered for conversion into Series A Preferred Shares. As a result of the conversions AltaGas has 5,511,220 Series A Preferred Shares and 2,488,780 Series B Preferred Shares issued and outstanding.

The Series A Preferred Shares will continue to pay on a quarterly basis, for the five-year period beginning on September 30, 2020, as and when declared by the Board of Directors of AltaGas, a fixed dividend based on an annual fixed dividend rate of 3.060 percent. The Series A Preferred Shares will continue to be listed on the Toronto Stock Exchange (TSX) under the symbol ALA.PR.A.

The Series B Preferred Shares will pay a floating quarterly dividend for the five-year period beginning on September 30, 2020, as and when declared by the Board of Directors of AltaGas. The floating quarterly dividend rate for the Series B Preferred Shares for the quarterly floating rate period (being the period from September 30, 2020 to but excluding, December 31, 2020) is 2.809 percent and will be reset every quarter. The Series B Preferred Shares will continue to be listed the TSX under the symbol ALA.PR.B.

For more information on the terms of, and risks associated with an investment in, the Series A Preferred Shares and the Series B Preferred Shares, please see the prospectus supplement dated August 11, 2010 which is available on SEDAR at www.sedar.com.

AltaGas is a leading North American energy infrastructure company that connects NGLs and natural gas to domestic and global markets. AltaGas creates value by growing and optimizing its energy infrastructure, including a focus on clean energy sources. For more information visit: www.altagas.ca

They later announced their wish:

to correct an error in its press release entitled “AltaGas Ltd. Announces Results of Series A and Series B Preferred Share Conversions” issued on September 30, 2020. As a result of the conversions AltaGas has 6,746,679 Series A Preferred Shares and 1,253,321 Series B Preferred Shares issued and outstanding rather than the 5,511,220 Series A Preferred Shares and 2,488,780 Series B Preferred Shares referred to in AltaGas’ previous press release. This correction does not change any other amounts or information reported in the prior press release.

Thus there has been a net conversion of 1,235,459 shares from ALA.PR.B to ALA.PR.A, or 15% of the total issue size.

ALA.PR.A is a FixedReset issued at 5.00%+266bp, which commenced trading August 19, 2010 after being announced August 10, 2010. In 2015 the issue reset to 3.38% and I recommended holders retain the issue. Despite this, there was a 31% conversion to FloatingResets. The issue has now reset to 3.06%.

ALA.PR.B is a FloatingReset, Bills+266bp, which arose via a partial conversion from ALA.PR.A in 2015.

This entry was posted on Wednesday, September 30th, 2020 at 10:51 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.