AltaGas closes $200-million hybrid note offering

Mr. Jon Morrison reports ALTAGAS ANNOUNCES CLOSING OF HYBRID NOTE OFFERING AltaGas Ltd. has closed its previously announced offering of $200-million of 5.375 per cent fixed-to-fixed rate junior subordinated notes, Series 4, due Dec. 5, 2055. The company intends to use the net proceeds of the offering to redeem or repurchase its outstanding cumulative redeemable five-year rate reset preferred shares, Series A, and cumulative redeemable floating rate preferred shares, Series B. Series A and Series B preferred share dividends are not deductible for tax purposes and are subject to Part 6.1 tax at 40 per cent. As a result of the offering, based on current rates, AltaGas expects aggregate cash savings of approximately $30-million over the initial five-year term of the junior subordinated notes due to lower taxes and financing charges relative to what the reset rate would have been on the Series A and Series B preferred share dividends. The junior subordinated notes are being offered through a syndicate of underwriters, co-led by BMO Nesbitt Burns Inc. and Scotia Capital Inc., under AltaGas's short form base shelf prospectus dated March 12, 2025, as supplemented by a prospectus supplement dated Sept. 3, 2025. About AltaGas Ltd. AltaGas is a leading North American infrastructure company that connects customers and markets to affordable and reliable sources of energy. The company operates a diversified, lower-risk, high-growth utilities and mid-stream business that is focused on delivering resilient and durable value for its stakeholders. We seek Safe Harbor.