DBRS Assigns Rating of Pfd-3 to AltaGas Ltd.’s Preferred Share Issue

DBRS has today assigned a rating of Pfd-3 with a Stable trend to AltaGas Ltd.’s (AltaGas or the Company) USD 200 million Cumulative Redeemable Five-Year Rate Reset Preferred Shares, Series C (Series C Preferred Shares), with a dividend rate of 4.40% per annum, payable quarterly for the initial fixed-rate period ending September 30, 2017. The dividend rate will reset on September 30, 2017, and every five years thereafter at a rate equal to the sum of the then five-year United States Government bond yield plus 3.58%. The Series C Preferred Shares are redeemable by AltaGas on September 30, 2017, and on September 30 every five years thereafter.

Holders of the Series C Preferred Shares will have the right, at their option, to convert their shares into cumulative redeemable preferred shares, Series D (Series D Preferred Shares), subject to certain conditions, on September 30, 2017, and on September 30 every five years thereafter. Holders of the Series D Preferred Shares will be entitled to receive cumulative quarterly dividends at a rate equal to the sum of the then three-month United States Treasury Bill rate plus 3.58%.

The Series C Preferred Shares are being issued under the Prospectus Supplement dated May 30, 2012, to the Short Form Base Shelf Prospectus dated December 7, 2012, and are expected to settle on or about June 6, 2012. The Series C Preferred Shares will rank equally with the Company’s currently outstanding Cumulative Redeemable Five-Year Rate Reset Preferred Shares, Series A, and with any future preferred shares of the Company. Net proceeds from the offering will be used for repayment of outstanding bank indebtedness and for general corporate purposes.

Note:
The applicable methodology is Rating North American Pipeline and Diversified Energy Companies, which can be found on our website under Methodologies.