AltaGas Ltd T.ALA

I don't understand the sell off today

[mbuch]

Switching from monthly to quarterly dividend?

Higher interest rates?

Some other news I can't find?

Recovered a bit from the lows, but the day is not over.

[Eoj123]

Could be this; https://money.tmx.com/en/quote/ALA/news/7783676541002639/ALTAGAS_ANNOUNCES_CONSIDERATION_OF_HYBRID_SUBORDINATED_DEBT_SECURITIES_OFFERING

[JayBanks]

  Can anyone explain this announcement clearer? Companies need to simplify the general news releases. It sounds like they are talking about issuing bonds/debentures and using the money to cancel preferred shares... Am I translating the hieroglyphs correctly or at least close or am I way off?

[Capharnaum]

Basically, they issue debt which carries an interest rate close to the dividend and at some point split into a cheap credit note and a purchasable share at a set price from the issue. Ie: $1B in hybrid debt at 3-4% which in 2025 becomes a credit note at 1% payable in 2030 and is accompanied by a subscription receipt at $32 (in 2025).

[JayBanks]

  Thank you for that explanation, I'm just getting into learning about how to get into private placements & warrants/rights/subscription receipts, so you mention that at the end gets me very interested. I kind of wonder why companies don't come to thier shareholders with more 'rights offerings', as we should be able to decide if we are willing to support more

[bushman33333]

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[CanSiamCyp]

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