TC Energy provides conversion right and dividend rate notice for Series 3 and 4 preferred shares

Rhea-AI Summary

TC Energy announced it will not redeem its Series 3 and Series 4 preferred shares on June 30, 2025. Holders of Series 3 shares can either retain their shares with a new fixed dividend rate of 4.102% until July 2, 2030, or convert to Series 4 shares with a floating rate of 3.924% for the initial period. Similarly, Series 4 shareholders can keep their shares with a 3.924% floating rate or convert to Series 3 shares with the 4.102% fixed rate. Shareholders must notify their broker by 5 p.m. EST on June 16, 2025, to exercise conversion rights. If either series falls below one million shares after conversion, they will automatically convert to the other series. The next conversion opportunity will be on July 2, 2030.

Positive

• New fixed dividend rate of 4.102% for Series 3 shares provides stable income for 5 years
• Floating rate of 3.924% for Series 4 shares offers quarterly dividend adjustments to market conditions
• Shareholders have flexibility to choose between fixed or floating rate dividends

Negative

• Automatic conversion risk if either series falls below one million shares
• Floating rate dividends may decrease based on market conditions

CALGARY, Alberta, June 02, 2025 (GLOBE NEWSWIRE) -- News Release – TC Energy Corporation (TSX:TRP) (NYSE:TRP) (TC Energy) today announced that it does not intend to exercise its right to redeem its Cumulative Redeemable First Preferred Shares, Series 3 (Series 3 Shares) and Cumulative Redeemable First Preferred Shares, Series 4 (Series 4 Shares) on June 30, 2025. As a result, subject to certain conditions:

(a) the holders of Series 3 Shares have the right to choose one of the following options with regard to their shares:

1. to retain any or all of their Series 3 Shares and continue to receive a fixed rate quarterly dividend; or
2. to convert, on a one-for-one basis, any or all of their Series 3 Shares into Series 4 Shares and receive a floating rate quarterly dividend, and

(b) the holders of Series 4 Shares have the right to choose one of the following options with regard to their shares:

1. to retain any or all of their Series 4 Shares and continue to receive a floating rate quarterly dividend; or
2. to convert, on a one-for-one basis, any or all of their Series 4 Shares into Series 3 Shares and receive a fixed rate quarterly dividend.

Should a holder of Series 3 Shares choose to retain their shares, such shareholders will receive the new annual fixed dividend rate applicable to Series 3 Shares of 4.102 per cent for the five-year period commencing June 30, 2025 to, but excluding, July 2, 2030. Should a holder of Series 3 Shares choose to convert their shares to Series 4 Shares, holders of Series 4 Shares will receive the floating quarterly dividend rate applicable to the Series 4 Shares of 3.924 per cent for the three-month period commencing June 30, 2025 to, but excluding, Sept. 29, 2025. The floating dividend rate will be reset every quarter.

Should a holder of Series 4 Shares choose to retain their shares, such shareholders will receive the floating quarterly dividend rate applicable to Series 4 Shares of 3.924 per cent for the three-month period commencing June 30, 2025 to, but excluding, Sept. 29, 2025. The floating dividend rate will be reset every quarter. Should a holder of Series 4 Shares choose to convert their shares to Series 3 Shares, holders of Series 3 Shares will receive the new fixed quarterly dividend rate applicable to the Series 3 Shares of 4.102 per cent for the five-year period commencing June 30, 2025 to, but excluding, July 2, 2030.

Beneficial owners of Series 3 Shares and Series 4 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. (EST) on June 16, 2025. 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.

Beneficial owners of Series 3 or Series 4 Shares who do not provide notice or communicate with their broker or other nominee by the deadline will retain their respective Series 3 Shares or Series 4 Shares, as applicable, and receive the new dividend rate applicable to such shares, subject to the conditions stated below.

The foregoing conversions are subject to the conditions that: (i) if TC Energy determines that there would be less than one million Series 3 Shares outstanding after June 30, 2025, then all remaining Series 3 Shares will automatically be converted into Series 4 Shares on a one-for-one basis on June 30, 2025, and (ii) if TC Energy determines that there would be less than one million Series 4 Shares outstanding after June 30, 2025, then all of the remaining outstanding Series 4 Shares will automatically be converted into Series 3 Shares on a one-for-one basis on June 30, 2025. In either case, TC Energy will issue a news release to that effect no later than June 23, 2025.

Holders of Series 3 Shares and Series 4 Shares will have the opportunity to convert their shares again on July 2, 2030 (adjusted from June 30, 2030 to account for applicable business days) and on June 30 in every fifth year thereafter as long as the shares remain outstanding. For more information on the terms of, and risks associated with an investment in the Series 3 Shares and the Series 4 Shares, please see the prospectus supplement dated March 4, 2010 which is available on sedarplus.ca or on our website.

About TC Energy
We’re a team of 6,500+ energy problem solvers connecting the world to the energy it needs. Our extensive network of natural gas infrastructure assets is one-of-a-kind. We seamlessly move, generate and store energy and deliver it to where it is needed most, to homes and businesses in North America and across the globe through LNG exports. Our natural gas assets are complemented by our strategic ownership and low-risk investments in power generation.

TC Energy’s common shares trade on the Toronto (TSX) and New York (NYSE) stock exchanges under the symbol TRP. To learn more, visit us at TCEnergy.com.

FORWARD-LOOKING INFORMATION
This release contains certain information that is forward-looking and is subject to important risks and uncertainties (such statements are usually accompanied by words such as "anticipate", "expect", "believe", "may", "will", "should", "estimate", "intend" or other similar words). Forward-looking statements in this document are intended to provide TC Energy security holders and potential investors with information regarding TC Energy and its subsidiaries, including management's assessment of TC Energy's and its subsidiaries' future plans and financial outlook. All forward-looking statements reflect TC Energy's beliefs and assumptions based on information available at the time the statements were made and as such are not guarantees of future performance. As actual results could vary significantly from the forward-looking information, you should not put undue reliance on forward-looking information and should not use future-oriented information or financial outlooks for anything other than their intended purpose. We do not update our forward-looking information due to new information or future events, unless we are required to by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to the most recent Quarterly Report to Shareholders and Annual Report filed under TC Energy’s profile on SEDAR+ at www.sedarplus.ca and with the U.S. Securities and Exchange Commission at www.sec.gov.

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Media Inquiries:
Media Relations
media@tcenergy.com
403-920-7859 or 800-608-7859

Investor & Analyst Inquiries:
Gavin Wylie / Hunter Mau
investor_relations@tcenergy.com
403-920-7911 or 800-361-6522

PDF available: http://ml.globenewswire.com/Resource/Download/55e8d9aa-7d04-46ae-9653-a4cbb657df40

FAQ

What are the new dividend rates for TC Energy (TRP) Series 3 and 4 preferred shares?

Series 3 shares will receive a fixed dividend rate of 4.102% until July 2, 2030, while Series 4 shares will receive a floating rate of 3.924% for the initial three-month period.

When is the deadline to convert TC Energy (TRP) Series 3 and 4 preferred shares?

The deadline to notify brokers for conversion is 5 p.m. EST on June 16, 2025.

What happens if TC Energy (TRP) preferred share series fall below one million shares?

If either Series 3 or 4 falls below one million shares after June 30, 2025, they will automatically convert to the other series.

When is the next conversion opportunity for TC Energy (TRP) Series 3 and 4 preferred shares?

The next conversion opportunity will be on July 2, 2030, and every five years thereafter.

What options do TC Energy (TRP) Series 3 and 4 preferred shareholders have?

Shareholders can either retain their current shares or convert them one-for-one into the other series, choosing between fixed (Series 3) or floating (Series 4) dividend rates.