TC Energy announces conversion rights and dividend rates for Series 5 and 6 preferred shares.

TC Energy recently announced its decision not to redeem its Cumulative Redeemable First Preferred Shares, Series 5 and Series 6 on Jan. 30, 2026. Instead, shareholders of Series 5 and Series 6 Shares have the option to retain their existing shares or convert them into the other series. Holders of Series 5 have the choice to receive a fixed rate quarterly dividend or convert to Series 6 for a floating rate quarterly dividend. Conversely, holders of Series 6 can stick with their shares for a floating rate quarterly dividend or switch to Series 5 for a fixed rate quarterly dividend.

If shareholders opt to retain their Series 5 Shares, they will receive an annual fixed dividend rate of 4.501 percent from Jan. 30, 2026, to Jan. 30, 2031. Those choosing to convert to Series 6 will receive a floating quarterly dividend rate of 3.732 percent starting on Jan. 30, 2026, which will be reset every quarter.

Holdings of Series 6 Shares who decide to retain will get a floating quarterly dividend rate of 3.732 percent from Jan. 30, 2026, to April 30, 2026, with the rate resetting quarterly. If they convert to Series 5, they will be entitled to a new fixed quarterly dividend rate of 4.501 percent until Jan. 30, 2031.

If shareholders wish to exercise their conversion rights, they must inform their broker or nominee before the deadline of 5 p.m. ET on Jan. 16, 2026. Failing to do so within the stipulated timeframe will result in the retention of their current shares, with the new dividend rate applied. It is advisable to act promptly to allow sufficient time for the necessary procedures to be completed.

The conversion of shares is subject to certain conditions set by TC Energy. If there are fewer than one million Series 5 Shares or Series 6 Shares outstanding after Jan. 30, 2026, all remaining shares will automatically convert to the other series on a one-to-one basis. TC Energy will issue a news release by Jan. 23, 2026, to inform shareholders of any such automatic conversion.

Shareholders are allowed to convert their shares again on Jan. 30, 2031, and every fifth year thereafter as long as the shares remain outstanding. For a detailed understanding of the terms and risks associated with investing in Series 5 and Series 6 Shares, interested parties can refer to the prospectus supplement dated June 17, 2010, available on sedarplus.ca or TC Energy’s website.

TC Energy, a prominent North American energy infrastructure company, is involved in transporting over 30 percent of the cleaner-burning natural gas used across the continent. With operations in Canada, the U.S., and Mexico, the company provides crucial energy connections that power industries and ensure sustainable power generation. Through partnerships with various stakeholders, TC Energy aims to create opportunities and drive growth for future generations.

It is important to note that forward-looking statements in this document are based on TC Energy’s beliefs and assumptions and carry risks and uncertainties. While the company provides information regarding its future plans and financial outlook, actual results may differ due to various factors. Therefore, shareholders and potential investors are urged to exercise caution and not rely solely on the forward-looking information provided.