TransCanada Corp. decided not to redeem any of its series 7 cumulative redeemable first preferred shares on April 30.

Consequently, holders were given an option to retain all or part of their series 7 shares and continue to get a fixed-rate quarterly dividend, or convert such shares, on a one-for-one basis, into series 8 cumulative redeemable first preferred shares and get a floating-rate quarterly dividend, according to a March 15 news release.

The dividend rate for the series 7 shares for the five-year period starting April 30 will be equal to the five-year Government of Canada bond yield on April 1 plus 2.38%. The rate for the series 8 shares for the three-month period beginning April 30 will be equal to the 90-day Government of Canada treasury bill rate on April 1 plus 2.38%.

Owners of the series 7 shares have until 5 p.m. EDT on April 15 to convert their shares. Holders of both the series 7 and series 8 shares can convert their shares again on April 30, 2024, and every five years after that, provided that the shares remain outstanding.

The Calgary, Alberta-based TransCanada operates natural gas and liquids pipelines, power generation and gas storage facilities across North America.