The net proceeds resulting from the Offering will be used to pay down existing indebtedness under AltaGas’ credit facility, to fund the redemption of all of the issued and outstanding Cumulative Redeemable 5-Year Minimum Rate Reset Preferred Shares, Series I of AltaGas and for general corporate purposes. As a result of the Offering, AltaGas expects annual average cash saving of approximately $12 million per year and to have approximately $4.1 billion of available liquidity. The Offering also continues to stagger, extend and de-risk AltaGas’ capital structure and tenor profile.
The Offering was made through a syndicate of investment dealers jointly led by CIBC Capital Markets, BMO Capital Markets and National Bank Financial Inc. under AltaGas’ Short Form Base Shelf Prospectus dated September 25, 2019, Prospectus Supplement dated December 10, 2019 and related Pricing Supplements dated November 25, 2020.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any of the 7.5 Year Notes or the 10 Year Notes in any jurisdiction. Neither the 7.5 Year Notes nor the 10 Year Notes have been approved or disapproved by any regulatory authority. Neither the 7.5 Year Notes nor the 10 Year Notes have been or will 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. The Company operates a diversified, low-risk, high-growth Utilities and Midstream business that is focused on delivering resilient and durable value for its stakeholders. For more information visit: www.altagas.ca or reach out to one of the following:
Senior Vice President, Investor Relations & Corporate Development
Director, Investor Relations