AltaGas closes $200-million hybrid note offering

Executive Summary

• AltaGas Ltd. has closed its previously announced offering of $200 million in 5.375% fixed-to-fixed rate junior subordinated notes, Series 4, due December 5, 2055.
• The net proceeds will be used to redeem or repurchase outstanding cumulative redeemable five-year rate reset preferred shares (Series A) and cumulative redeemable floating rate preferred shares (Series B).
• AltaGas expects aggregate cash savings of approximately $30 million over the initial five-year term of the notes due to lower taxes and financing charges compared to the reset rates on the preferred shares.

Key Details

• Instrument: 5.375% fixed-to-fixed rate junior subordinated notes, Series 4.
• Maturity Date: December 5, 2055.
• Gross Proceeds: $200 million.
• Use of Proceeds: Redemption or repurchase of outstanding Series A preferred shares and Series B preferred shares.
• Financial Impact: Expected aggregate cash savings of approximately $30 million over the initial five-year term of the notes, driven by lower taxes and financing charges relative to the reset rate on Series A and Series B preferred share dividends.
• Underwriters: Syndicate co-led by BMO Nesbitt Burns Inc. and Scotia Capital Inc.
• Prospectus: Offered under AltaGas's short form base shelf prospectus dated March 12, 2025, as supplemented by a prospectus supplement dated September 3, 2025.