CALGARY, AB – Inter Pipeline Ltd. (“Inter Pipeline”) announced today that it has agreed to issue an aggregate of $1 billion Senior Unsecured Notes (the “Notes”) consisting of:
- $750 million of Notes with a fixed interest rate of 3.983% per annum, payable semi-annually, and mature on November 25, 2031; and
- $250 million of Notes with a fixed interest rate of 5.091% per annum, payable semi-annually, and mature on November 27, 2051.
The Notes will be senior unsecured debt of Inter Pipeline and will rank equally in right of payment with all other existing and future senior unsecured debt of Inter Pipeline.
The Notes are being offered in Canada on a private placement basis in reliance upon exemptions from the prospectus requirements under applicable securities legislation (the “Offering”). The Offering is being made on a best efforts basis through a syndicate of agents, with RBC Capital Markets, CIBC Capital Markets and National Bank Financial acting as joint lead agents and joint bookrunners, as well as BMO Capital Markets and TD Securities as joint bookrunners. The Offering is expected to close on November 25, 2021, subject to customary closing conditions.
Inter Pipeline will use the net proceeds of the Offering to repay indebtedness under its $1.5 billion revolving credit facility, series 3 medium term notes due May 2022 and for general corporate purposes.
This news release does not constitute an offer to sell or the solicitation of an offer to buy the Notes in any jurisdiction, in which such an offer, solicitation or sale would be unlawful. The Notes being offered 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, or any state securities laws, and may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons.