By Rebecca Melvin
New York, May 29 - AltaGas Ltd. has priced C$150 million of five-year fixed-rate reset preferred shares at a price of C$25.00 per share on a bought-deal basis to yield 4.4% for the first five years, according to a news release.
There's an over-allotment option for an additional C$50 million of shares.
The dividend will be reset on Sept. 30, 2017 and every five years thereafter at a rate of the then five-year U.S. government bond yield plus 358 basis points.
The Regulation S deal is being brought by a syndicate of underwriters co-led by RBC Capital Markets, CIBC and Scotiabank.
Proceeds will be used to reduce outstanding debt and for general corporate purposes.
AltaGas can call the series C preferreds on Sept. 30, 2017 and on Sept. 30 of every fifth year thereafter.
Holders have the right to convert their shares into cumulative floating-rate series D first preferred shares on Sept. 30, 2017 and on Sept. 30 of every fifth year thereafter.
Holders of the series D preferred shares will be entitled to receive quarterly floating-rate cumulative dividends equal to the sum of the then three-month U.S. Treasury bill yield plus 358 bps.
Holders of the series C preferred shares will be entitled to their first dividends, if declared, payable on Oct. 1, 2012 and will be US$0.3473 per series C preferred share, based on the anticipated closing of the offering on June 7.
The series C preferred shares will be offered to the public in Canada by way of a supplemented short-form prospectus.
Based in Calgary, Alta., AltaGas is an energy infrastructure business focused on natural gas, power and regulated utilities.
| Issuer: | AltaGas Ltd.
|
| Amount: | C$150 million
|
| Greenshoe: | C$50 million
|
| Maturity: | Perpetual
|
| Securities: | Five-year fixed rate reset series C first preferred shares
|
| Bookrunners: | RBC Capital Markets, CIBC and Scotiabank
|
| Dividend: | 4.4% for five years, then reset every five years at five-year U.S. Treasury bond yield plus 358 bps
|
| Price: | Par of C$25.00
|
| Yield: | 4.4% for five years
|
| Call feature: | After five years on Sept. 30, 2017, then every five years
|
| Pricing date: | May 29
|
| Settlement date: | June 6
|
| Distribution: | Regulation S, Canada
|
| Stock symbol: | Toronto: ALA
|
| Market capitalization: | C$2.69 billion
|
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