TC Energy sets new dividend rates for preferred shares

TC Energy Corporation (TSX: TRP) (NYSE: TRP) announced it will not redeem its Series 5 and Series 6 preferred shares on January 30, 2026, allowing shareholders conversion options between the two series.

Series 5 shareholders can retain their shares and receive a fixed annual dividend rate of 4.501% for the five-year period from January 30, 2026 to January 30, 2031, or convert to Series 6 shares on a one-for-one basis to receive a floating quarterly dividend rate of 3.732% for the first quarter starting January 30, 2026.

Series 6 shareholders can retain their shares and receive the floating quarterly dividend rate of 3.732% for the first quarter, with the rate reset every quarter, or convert to Series 5 shares to receive the fixed annual dividend rate of 4.501% for the five-year period.

Shareholders must communicate with their brokers by 5 p.m. ET on January 16, 2026 to exercise conversion rights. Those who do not provide notice will retain their current shares with the applicable new dividend rates.

The conversions are subject to conditions requiring minimum outstanding shares. If fewer than one million shares of either series would remain outstanding after January 30, 2026, all remaining shares of that series will automatically convert to the other series on a one-for-one basis. TC Energy will announce any such automatic conversions by January 23, 2026.

Future conversion opportunities will be available on January 30, 2031 and every fifth year thereafter while the shares remain outstanding.

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