AltaGas Ltd. has announced:
its intention to redeem all of its 6,746,679 issued and outstanding Cumulative Redeemable 5-Year Rate Reset Preferred Shares, Series A (the “Series A Shares”) and all of its 1,253,321 issued and outstanding Cumulative Redeemable Floating Rate Preferred Shares, Series B (the “Series B Shares” and, together with the Series A Shares, the “Preferred Shares”) in accordance with the terms of the Series A Shares and Series B Shares as set out in the Company’s articles on September 30, 2025 (the “Redemption Date”).
AltaGas will redeem the Preferred Shares for a redemption price equal to $25.00 per Series A Share and $25.00 per Series B Share (the “Redemption Price”), less any tax required to be deducted or withheld by the Company. The total redemption price to AltaGas will be $200 million.
As previously announced, the dividend payable on September 29, 2025 to holders of the Preferred Shares of record on September 16, 2025, will be $0.19125 per Series A Share and $0.33422 per Series B Share. This will be the final quarterly dividend on the Preferred Shares. Upon payment of the September 29, 2025 dividend, there will be no accrued and unpaid dividends on the Preferred Shares as at the Redemption Date.
The Company has provided notice today of the Redemption Price and the Redemption Date to the sole registered holder of the Preferred Shares in accordance with the terms of the Series A Shares and Series B Shares, as set out in the Company’s articles. Non-registered holders of Series A Shares or Series B Shares should contact their broker or other intermediary for information regarding the redemption process for the Series A Shares and Series B Shares in which they hold a beneficial interest.
The Company’s transfer agent for the Series A Shares and Series B Shares is Computershare Investor Services Inc. Questions regarding the redemption process may be directed to Computershare Investor Services Inc. at 1-800-564-6253 or by email to corporateactions@computershare.com.
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 reset to 3.06% in 2020 and there was a 15% net conversion to the FixedReset.
ALA.PR.B is a FloatingReset, Bills+266bp, which arose via a partial conversion from ALA.PR.A in 2015.