TC Energy expects to realize $1.15 billion from the partial monetization of Northern Courier Pipeline
28 May 2019 - 10:45PM
News Release - TC Energy Corporation (TSX, NYSE: TRP) (TC
Energy) announced today that it has entered into an agreement to
sell an 85 per cent equity interest in Northern Courier Pipeline to
Alberta Investment Management Corporation (AIMCo). In conjunction
with the sale, TC Energy also expects that Northern Courier
Pipeline will undertake a financing of long-term, non-recourse
debt, the proceeds of which are expected to be fully distributed to
TC Energy. Both transactions are expected to close in the third
quarter of 2019, with the equity sale contingent on the debt
financing and subject to closing adjustments along with customary
regulatory approvals. The 90 km (56 mile) pipeline system
transports bitumen and diluent between the Fort Hills mine site and
Suncor Energy’s terminal located north of Fort McMurray, Alberta.
The resulting aggregate gross proceeds to TC Energy are projected
to be approximately $1.15 billion.
“The monetization of Northern Courier advances our ongoing
efforts to prudently fund our industry-leading capital program
while maximizing value for our shareholders,” said Russ Girling, TC
Energy President and Chief Executive Officer. “Along with the sale
of Coolidge, which recently closed, we now expect to realize
approximately $1.75 billion of proceeds from announced portfolio
management activities in 2019. When combined with our significant
and growing cash flow, access to capital markets and potential
additional portfolio management, we believe we are well-positioned
to fund our $30 billion secured capital program in a manner
consistent with achieving targeted leverage metrics in 2019 and
thereafter,” added Girling.
Following the closing of the transactions, TC Energy will hold a
15 per cent aggregate interest in Northern Courier Pipeline and
will account for the asset under the equity method in the company’s
consolidated financial statements. TC Energy will remain the
operator of the pipeline.
“We look forward to working with AIMCo as we realize the
benefits of this partnership and financing opportunity,” concluded
Girling.
RBC Capital Markets is acting as exclusive financial advisor to
TC Energy and as Sole Bookrunner and Global Lead Agent on the debt
issuance.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities in any jurisdiction. The
securities mentioned herein have not been and will not be qualified
by prospectus in Canada or registered under the U.S. Securities Act
of 1933, as amended, or any state securities laws, and may not be
offered or sold absent registration or an exemption therefrom.
TC Energy delivers the energy millions of people rely on every
day to power their lives and fuel industry. We are not only focused
on what we do, but how we do it – guided by core values of safety,
responsibility, collaboration and integrity, our more than 7,000
people are committed to sustainably developing and operating
pipeline, power generation and energy storage facilities across
Canada, the United States and Mexico. TC Energy’s common shares
trade on the Toronto (TSX) and New York (NYSE) stock exchanges
under the symbol TRP. Visit TCEnergy.com and connect with us on
social media to learn more.
FORWARD-LOOKING INFORMATION
This publication contains certain information that is
forward-looking and is subject to important risks and uncertainties
(such statements are usually accompanied by words such as
"anticipate", "expect", "believe", "may", "will", "should",
"estimate", "intend" or other similar words). Forward-looking
statements in this release include statements regarding the planned
monetization transaction, the expected timing and outcome thereof,
expected proceeds from portfolio management activities in 2019 and
our ability to fund our capital program and achieve targeted
leverage metrics. Forward-looking statements in this document are
intended to provide TC Energy security holders and potential
investors with information regarding TC Energy and its
subsidiaries, including management's assessment of TC Energy's and
its subsidiaries' future plans and financial outlook. All
forward-looking statements reflect TC Energy's beliefs and
assumptions based on information available at the time the
statements were made and as such are not guarantees of future
performance. Readers are cautioned not to place undue reliance on
this forward-looking information, which is given as of the date it
is expressed in this news release, and not to use future-oriented
information or financial outlooks for anything other than their
intended purpose. TC Energy undertakes no obligation to update or
revise any forward-looking information except as required by law.
Key assumptions on which the forward-looking information in this
release is based include: assumptions regarding regulatory
decisions and outcomes, performance and credit risk of
counterparties, the availability of debt financing and the state of
debt markets and other capital markets. For additional information
on the assumptions made, and the risks and uncertainties which
could cause actual results to differ from the anticipated results,
refer to the Quarterly Report to Shareholders dated May 2, 2019 and
2018 Annual Report filed under TC Energy's profile on SEDAR at
www.sedar.com and with the U.S. Securities and Exchange Commission
at www.sec.gov.
Media Enquiries:Terry Cunha / Matt
John403.920.7859 or 800.608.7859
Investor & Analyst Enquiries:David Moneta /
Duane Alexander403.920.7911 or 800.361.6522
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