CALGARY, ALBERTA–(Marketwired – Aug. 17, 2016) – Inter Pipeline Ltd. (“Inter Pipeline”) (TSX:IPL) announced today that it has closed its previously announced equity offering of 22,430,000 subscription receipts at $26.75 per subscription receipt for gross proceeds of $600,002,500. The offering was made on a bought deal basis through a syndicate of underwriters led by TD Securities Inc., as sole bookrunner, and co-led by CIBC Capital Markets and RBC Capital Markets, and including BMO Capital Markets, National Bank Financial Inc., Scotiabank, AltaCorp Capital Inc., Canaccord Genuity Corp., FirstEnergy Capital Corp. and Peters & Co. Limited.
Inter Pipeline will use the net proceeds of the offering to partially fund the previously announced acquisition of The Williams Companies Inc.’s and William Partners L.P.’s Canadian natural gas liquids midstream businesses (“Williams Canada”).
Each subscription receipt represents the right of the holder to receive, upon closing of the acquisition and without payment of additional consideration or further action, one common share of Inter Pipeline. The holder will also receive an amount equal to the dividends Inter Pipeline declares on the common shares, if any, for the record dates which occur during the period from today to the date immediately preceding the date that common shares are issued on the exchange of the subscription receipts.
The gross proceeds from the sale of subscription receipts will be held in escrow pending the closing of the acquisition. If the acquisition fails to close by January 31, 2017, or the acquisition is terminated at an earlier time, the gross proceeds and pro rata entitlement to interest earned on the escrowed proceeds thereon will be paid to holders of the subscription receipts.
The subscription receipts will commence trading on the Toronto Stock Exchange today under the symbol “IPL.R”.
This news release is not an offer of the Subscription Receipts or underlying common shares for sale in the United States. The Subscription Receipts to be offered and the underlying Common Shares have not been and will not be registered under the United States Securities Act of 1933 or any state securities laws and accordingly are not being offered for sale and may not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, except pursuant to an exemption from the registration requirements of that Act.
Inter Pipeline Ltd.
Inter Pipeline is a major petroleum transportation, natural gas liquids extraction, and bulk liquid storage business based in Calgary, Alberta, Canada. Inter Pipeline owns and operates energy infrastructure assets in western Canada and Europe. Inter Pipeline is a member of the S&P/TSX 60 Index and its common shares trade on the Toronto Stock Exchange under the symbol IPL. www.interpipeline.com