CALGARY, AB,
May 2, 2022 /CNW/
- Canadian Utilities Limited (TSX: CU) (TSX: CU.X)
Canadian Utilities Limited announced today that it has notified
the registered shareholder of its Cumulative Redeemable Second
Preferred Shares Series Y ("Series Y Preferred Shares") of a
conversion privilege and applicable dividend rates. As a result,
subject to certain conditions, the holders of Series Y Preferred
Shares will have the right to choose one of the following options
with regard to their shares:
To retain any or all of their Series Y Preferred Shares and
continue to receive a fixed rate quarterly dividend; or
To convert, on a one-for-one basis, any or all of their Series Y
Preferred Shares into Cumulative Redeemable Second Preferred Shares
Series Z ("Series Z Preferred Shares") of Canadian Utilities
Limited and receive a floating rate quarterly dividend.
Effective June 1, 2022, the annual
dividend rate for the Series Y Preferred Shares is set at 5.20% for
the five-year period from and including June
1, 2022 to but excluding June 1,
2027 and the dividend rate for the Series Z Preferred Shares
is set at an annual rate of 3.78% for the three-month period
commencing June 1, 2022 to but
excluding September 1, 2022. The
dividend rate for the Series Z Preferred Shares will be reset each
quarter. Both rates were calculated according to the terms
described in the prospectus supplement of Canadian Utilities
Limited dated September 15, 2011.
Beneficial owners of Series Y Preferred Shares who wish to
exercise their right of conversion should communicate as soon as
possible with their broker or other nominee and ensure that they
follow their instructions in order to meet the deadline to exercise
such right, which is 3 p.m.
(Calgary time) / 5 p.m. (Toronto
time) on May 17, 2022. Any notices
received after this deadline will not be valid. As such, it is
recommended that this be done well in advance of the deadline in
order to provide the broker or other intermediary with time to
complete the necessary steps.
The foregoing conversions are subject to the conditions that:
(i) if Canadian Utilities Limited determines that there would be
less than 2,000,000 Series Y Preferred Shares outstanding on
June 1, 2022, then all remaining
Series Y Preferred Shares will automatically be converted into
Series Z Preferred Shares on June 1,
2022, and (ii) alternatively, if Canadian Utilities Limited
determines that there would be less than 2,000,000 Series Z
Preferred Shares outstanding on June 1,
2022 after giving effect to conversion notices received, no
Series Y Preferred Shares will be converted into Series Z Preferred
Shares. If either of these scenarios occurs, Canadian Utilities
Limited will issue a news release to that effect on or before
May 24, 2022.
Holders of the Series Y Preferred Shares and the Series Z
Preferred Shares, as applicable, will have the opportunity to
convert their shares again on June 1,
2027, and every five years thereafter as long as the shares
remain outstanding.
For more information on the terms of, and risks associated with
an investment in, the Series Y Preferred Shares and the Series Z
Preferred Shares, please see Canadian Utilities Limited's
prospectus supplement dated September 15,
2011, which can be found under Canadian Utilities Limited's
profile on SEDAR at www.sedar.com.
With approximately 4,800 employees and assets of $21
billion, Canadian Utilities Limited is an ATCO company. Canadian
Utilities is a diversified global energy infrastructure corporation
delivering essential services and innovative business solutions in
Utilities (electricity and natural gas transmission and
distribution, and international electricity operations); Energy
Infrastructure (electricity generation, energy storage, and
industrial water solutions); and Retail Energy (electricity and
natural gas retail sales). More information can be found
at www.canadianutilities.com.
Investor & Analyst Inquiries:
Colin Jackson
Senior Vice President
Finance, Treasury, Risk & Sustainability
Colin.Jackson@atco.com
403 808 2636
Media Inquiries:
Kurt
Kadatz
Director, Corporate Communications
Kurt.Kadatz@atco.com
587 228 4571
Forward-Looking Information:
Certain statements contained in this news release may
constitute forward-looking information. Forward-looking information
is often, but not always, identified by the use of words such as
"anticipate", "plan", "estimate", "expect", "may", "will",
"intend", "should", and similar expressions.
Although the Company believes that the expectations reflected
in the forward-looking information are reasonable, such statements
are not guarantees of future performance and no assurance can be
given that these expectations will prove to be correct.
Forward-looking information should not be unduly relied upon. By
their nature, these statements involve a variety of
assumptions, known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
information.
The Company's actual results could differ materially from
those anticipated in this forward-looking information as a result
of regulatory decisions, competitive factors in the industries in
which the Company operates, prevailing economic conditions
(including as may be affected by the COVID-19 pandemic), and other
factors, many of which are beyond the control of the
Company. Readers are cautioned that the foregoing
lists are not exhaustive. For additional information about the
principal risks that the Company faces, see "Business Risks and
Risk Management" in Management's Discussion and Analysis for the
year-ended December 31,
2021. There can be no assurance that dividends
will be paid. The declaration and payment of any dividend is at the
discretion of the Company's board of directors and will depend on
numerous factors, including compliance with applicable laws and the
financial performance, debt, obligations, working capital
requirements and future capital requirements of the Company and its
subsidiaries.
Any forward-looking information contained in this news
release represents the Company's expectations as of the date hereof
and is subject to change after such date. The Company disclaims any
intention or obligation to update or revise any forward-looking
information whether as a result of new information, future events
or otherwise, except as required by applicable securities
legislation.
SOURCE Canadian Utilities Limited