Q: I own this preferred and am wondering how it will be treated with regards to the upcoming split of TRP into 2 units...where will the preferred reside after split is done....does this have the effect of reducing credit worthiness of this said preferred..many thanks
5i Research Answer:
We do not see any notes on how the split will affect the Series 7 prefered shares. The prefered shares will likely continue to reside with TC Energy. We would not say credit quality is reduced given that the liquids pipeline is a smaller portion of the business and TRP will be able to develerage some of its balance sheet in the transaction. There have been no direct comments yet that we can find on how preferred shares are being exactly treated in this transaction so this is just our opinion.