The net proceeds resulting from the Offering will be used to pay down existing indebtedness under AltaGas’ credit facility and for general corporate purposes. As a result, AltaGas expects that the Offering will be leverage neutral. Additionally, because the coupon rate of the Notes is lower than the borrowing rate of the existing debt that it is replacing and the prior notes which were repaid in June 2020, AltaGas expects cost savings of approximately $5.6 million per annum over the term of the Notes as a result of the debt repayment. With the Offering completed, AltaGas has successfully refinanced all of the 2020 maturities across the AltaGas group of companies.
The Offering was made through a syndicate of investment dealers co-led by Scotiabank and TD Securities Inc. under AltaGas’ Short Form Base Shelf Prospectus dated September 25, 2019, Prospectus Supplement dated December 10, 2019 and a related Pricing Supplement dated June 8, 2020.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any of the Notes in any jurisdiction. The Notes have not been approved or disapproved by any regulatory authority. The Notes have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and may not be offered or sold within the United States unless an exemption from the registration requirements of the U.S. Securities Act is available.
All financial figures are in Canadian dollars.
AltaGas is a leading North American energy infrastructure company that connects NGLs and natural gas to domestic and global markets. AltaGas creates value by growing and optimizing its energy infrastructure, including a focus on clean energy sources. For more information visit: www.altagas.ca