- Why did AltaGas undertake a review of its dividend?
AltaGas' Board of Directors completed a thorough review of the Company's dividend to improve financial strength and ensure greater funding flexibility.
- What was the outcome of the review?
The Board of Directors has declared a January dividend of $0.08 per common share, which equates to $0.96 annually. This represents a 56 percent reduction.
- Why was the dividend reduced?
After a thorough review of all of the parts of our funding plan, cutting the dividend was necessary to free up funds to improve the health of our balance sheet and make sure we have a stable and sustainable dividend moving forward. The dollars we will retain by resetting our dividend can be used to pay down debt and fund growth.
- What happened to the Premium Dividend™ Component of the Premium Dividend™, Dividend Reinvestment and Optional Cash Purchase Plan?
In a decision to minimize equity and reduce the cost of capital, on October 30, 2018, AltaGas' Board of Directors announced the suspension the Premium Dividend™ Component of the Premium Dividend™, Dividend Reinvestment and Optional Cash Purchase Plan effective December 18, 2018, until further notice.
- With the suspension of the Premium Dividend™ Component of the plan, where do I enroll in the regular dividend reinvestment plan (DRIP)?
All the necessary enrollment information for the DRIP – including enrollment forms – is available on our website.
Series E and Series F Preferred Shares Conversion Right FAQs
When will I receive election forms from AltaGas to exercise my conversion right?
AltaGas does not provide conversion documents; please contact your broker for how you should provide your election to the broker.
- How do I elect to convert my Series E Shares into Series F Shares?
Contact your broker for assistance with exercising your conversion right. It is recommended that this be done well in advance of the Conversion Notice Deadline in order to ensure that your broker has adequate time to submit your election.
What do I do if I don’t want to convert my Series E Shares to Series F Shares?Nothing. If you do not want to convert to Series F Shares you will automatically be deemed to have elected to retain your Series E Shares. However, if after receipt of all conversion notices, less than 1,000,000 Series E Shares would remain outstanding, your Series E Shares will automatically convert to Series F Shares on a one-for-one basis in accordance with the terms of the Series E Shares.
When do I have to make the decision whether to convert my shares or not?The deadline to provide notice of exercise of conversion rights is December 17, 2018 at 5:00 pm Toronto time. Please note however that CDS, as the sole registered holder of the Series E Shares, must submit such notices of conversion before such Conversion Notice Deadline. In order to ensure that CDS’ notice of conversion includes a beneficial holder’s Series E Shares, beneficial holders should contact their broker for assistance with exercising their conversion right. It is recommended that this be done well in advance of the Conversion Notice Deadline in order to ensure that your broker is able to submit your election for inclusion in CDS’ notice of conversion.
When will the new dividend rates be announced for the Series E Shares and Series F Shares?AltaGas will issue a press release on December 3, 2018 which will provide the new five-year fixed dividend rate for the Series E Shares and the three-month floating rate for the Series F Shares, in each case commencing on December 31, 2018.
What if only a few shareholders elect to convert to Series F Shares? What if a large number of shareholders elect to convert to Series F Shares?Series F Shares will only be issued if 1,000,000 or more shares of Series E elect to convert to Series F Shares. If less than 1,000,000 Series E Shares are elected to convert, no Series F Shares will be issued and all shares will remain as Series E Shares. Conversely, if less than 1,000,000 Series E Shares elect to remain as Series E Shares; all Series E Shares will be converted to Series F Shares.
AltaGas will issue a press release no later than December 24, 2018 with the results of the share conversion elections.