AltaGas Ltd T.ALA

AltaGas Announces Intention to Redeem All Outstanding Series

[birdie22]

AltaGas Announces Intention to Redeem All Outstanding Series I Preferred Shares

AltaGas Announces Intention to Redeem All Outstanding Series I Preferred Shares

Canada NewsWire
CALGARY, AB, Nov. 20, 2020
CALGARY, AB, Nov. 20, 2020 /CNW/ - AltaGas Ltd. ("AltaGas" or the "Company") (TSX: ALA) announces its intention to redeem – in accordance with the terms of the Cumulative Redeemable 5-Year Minimum Rate Reset Preferred Shares, Series I (the "Series I Shares") as set out in the Company's articles – all of its 8,000,000 issued and outstanding Series I Shares on December 31, 2020 (the "Redemption Date") for a redemption price equal to $25.00 per Series I Share, together with all accrued and u npaid dividends to, but excluding, the Redemption Date (the "Redemption Price"), less any tax required to be deducted or withheld by the Company.
As previously announced, the Company's Board of Directors has declared a dividend of $0.328125 per Series I Share for the period commencing September 30, 2020 and ending December 30, 2020 payable to holders of record as of the close of business on December 15, 2020. This will be the final quarterly dividend on the Series I Shares, although holders will receive on redemption of the Series I Shares all accrued and unpaid dividends up to but excluding the Redemption Date.
The Company has provided notice today of the Redemption Price and the Redemption Date to the sole registered holder of the Series I Shares in accordance with the terms of the Series I Shares as set out in the Company's articles. Non-registered h olders of Series I Shares should contact their broker or other intermediary for information regarding the redemption process for the Series I Shares in which they hold a beneficial interest. The Company's transfer agent for the Series I 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 [e-mail].

[HermannHaller]

$200 million cash...the balance sheet must be in pretty good shape, they didn't have to redeem these. Probably see a bump in the other prefs today, like ALA.PR.E.

[bossu]

A good sign in the right direction.. Good for the balance sheet!

[CanSiamCyp]

Makes sense to redeem these cuz they would have a minimum 5.25% dividend rate going forward for the next 5 years. This dividend is paid from post tax income. Can be substituted with lower cost debt for which the interest is deducted from pre tax income. So the pref holders get a boost in their return - from $23.25 market price to $25 redemption value. The company saves money on taxes. And there is

[bossu]

ALA.PR.I have a pretty good reward of 6,6 % and all the ALA.PR shares are up to 6,6 % and Ala share holders another a  1,0% loss so far today ! What a showing ! Would have been better to buy any ALA PR in April  for a much better reward than any ALA common shares....

[bossu]

Outstanding PR issues shares. PR...............................................Share price  .........................................................Nov 20 Serie A   6 746 679   $ 169 M Serie B   1 253 321   $  31 M Serie C   8 000 000   $ 206 M Serie E    8 000 000  $ 200M Serie G   6 885 823 

[bossu]

Glad to see that the point I raise attract some positive view!@br /@ ALA is srenghtening its financial position and can make positive@nbsp;@br /@ move in reducing the borrowing cost and increase the EBITDA ,@br /@ Just to say that financial position is stronger and bottom line@nbsp;@br /@ improving to a point that dividend might be increased in the coming months. In my mind Increase EBITDA from

[bossu]

About the dividend paid by ALA to Sept 30: _To preferred holder $ 50 M and $ 66 M to Dec 30 _To common shareholders $ 201 M and 268 M to Dec 30 for a total of $ 334 M  Adding just 0,01 to the actual 0,08 monthly payment will cost an additionnal  $ 28 M per year So buying back Serie I will save $ 10 M and Serie K another $ 15 M for a total of $ 25 M (possible) Of course issuing notes at

[rustyblades]

I concur with your assessment. They need to raise the dividend soon!!! The present share price is exposing them to a possible take over so I think the December timing is about right. The dividend paid on the redeemed preferred shares is equivalent to 3.8 cents per common share (8M pref / 279M common x 1.3125 annual dividend) so a bump of six cents per year (6 % raise) should be the minimum

[rustyblades]

The heading in the subject line is misleading. It must have been truncated due to the length. The news release says that AltaGas is redeeming all Sertes I preferred shares.  The subject line can lead some to conclude that ALA is redeeming all oustanding series and not just series I.

[bossu]

When the subject line is too long the system cut the last part...but if you go back at ''birdie22'' post on November 20 at 08:42 am you will see that the subject is re-posted ...«AltaGas Announces Intention to Redeem All Outstanding Series I Preferred Shares AltaGas...» So no misleading at all and  the reader has to read correctly.

[rustyblades]

My apologies if my post came across as if this was done intentionally. I mentioned that the subject line was probably truncated due to the length. In any case anyone who read the release knows what is happening. All good.

[JJMA]

[JJMA]

Sorry Bossu I wrote the following which appeared as part of your last post, "I don't support a dividend increase at t this point. The 5.3% that it currently pays is attractive in itself. I would rather see the money go towards deleveraging the balnce sheet. Reducing the leverage will lead to an upgrade of the company's debt rating. A ratings upgrade will have a greater positive impact

[Dragon1]

This with RIPET performing,Petrogas deal, and hopefully a cold winter in the NE should lead to a div hike next spring and sp to follow.Yes I hope management is listening.

[Bushman3333]

That's make a sense, though dividend hike over due. 

[Bushman3333]

That's beautiful News  Altagas will be able to save 30MD a year, the company on right track.