ALA.PR.E Prospectus – AltaGas Ltd. Preferred Shares Series E.

The following is a  set of excerpts from the prospectus document for the Series E preferreds. The excerpts, highlight the most relevant information, an investor should know when analyzing this preferred. A link to the prospectus is provided lower in this page.  The original document for ALA.PR.E Prospectus – AltaGas Ltd. Preferred Shares Series E was used for the excerpts and the important information was highlighted for quick access.

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Excerpt: Size and initial yield

AltaGas Ltd. (“AltaGas”) is hereby qualifying the distribution (the “Offering”) of 8,000,000 cumulative redeemable 5-year rate reset preferred shares, series E (the “Series E Shares”) of AltaGas at a price of $25.00 per Series E Share (the “Offering Price”). See “Details of the Offering” and “Plan of Distribution”. The holders of Series E Shares will be entitled to receive, as and when declared by the board of directors of AltaGas (the “Board of Directors”) out of moneys of AltaGas properly applicable to the payment of dividends, fixed cumulative preferential cash dividends for the initial period from and including the date of issue of the Series E Shares to, but excluding, December 31, 2018 (the “Initial Fixed Rate Period”), at an annual rate of $1.25 per share, payable quarterly on the last day of March, June, September and December in each year (less any tax required to be deducted or withheld by AltaGas). Assuming an issue date of December 13, 2013, the first dividend, if declared, will be payable March 31, 2014, in the amount of $0.3699 per share. See “Details of the Offering”.

Excerpt: Reset Date and Yield Terms

For each five-year period after the Initial Fixed Rate Period (each a “Subsequent Fixed Rate Period”), the holders of Series E Shares shall be entitled to receive, as and when declared by the Board of Directors, fixed cumulative preferential cash dividends, payable quarterly on the last day of March, June, September and December in each year, in the amount per share determined by multiplying one-quarter of the Annual Fixed Dividend Rate (as hereinafter defined) for such Subsequent Fixed Rate Period by $25.00. The Annual Fixed Dividend Rate for the ensuing Subsequent Fixed Rate Period will be determined by AltaGas on the applicable Fixed Rate Calculation Date (as hereinafter defined) and will be equal to the sum of the Government of Canada Yield (as hereinafter defined) on the applicable Fixed Rate Calculation Date plus 3.17%. See “Details of the Offering”.

Excerpt: Conversion Terms

The holders of the Series E Shares will have the right to convert all or any of their shares into cumulative redeemable floating rate preferred shares, series F of AltaGas (the “Series F Shares”), subject to certain conditions, on December 31, 2018 and on December 31 in every fifth year thereafter. The holders of the Series F Shares will be entitled to receive, as and when declared by the Board of Directors, quarterly floating rate cumulative preferential cash dividends payable on the last day of March, June, September and December in each year in the amount per share determined by multiplying the Floating Quarterly Dividend Rate (as hereinafter defined) for such Quarterly Floating Rate Period (as hereinafter defined) by $25.00 and multiplying that product by a fraction, the numerator of which is the actual number of days in such Quarterly Floating Rate Period and the denominator of which is 365 or 366, depending upon the actual number of days in the applicable year.

The Floating Quarterly Dividend Rate will be the annual rate of interest equal to the sum of the T-Bill Rate (as hereinafter defined) on the applicable Floating Rate Calculation Date (as hereinafter defined) plus 3.17%. See “Details of the Offering”. The Series E Shares and Series F Shares are series of shares in the same class. The conversion right entitles holders to elect periodically which of the two series they wish to hold, subject to certain restrictions and automatic conversion in certain circumstances, and does not entitle holders to receive a different class or type of securities. Other than the different dividend rights and redemption rights attached thereto, the Series E Shares and Series F Shares are identical in all material respects. See “Details of the Offering”.

ALA.PR.E Prospectus – AltaGas Ltd. Preferred Shares Series E. Original Document

I have presented the most important information regarding the Series E preferreds. If you need to go through the original and complete document for ALA.PR.E Prospectus – AltaGas Ltd. Preferred Shares Series E is available here.