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Calgary, Alberta-based AltaGas Ltd. has priced an offering of US$900 million (CA$1.2 billion) aggregate principal amount on its 7.20% junior subordinated notes due 2054.
The notes, which have a “fixed-to-fixed reset rate”, will be callable at the first reset date of Oct. 15, 2034, AltaGas said in a Sept. 17 press release.
The offer is expected to close by Sept. 23, 2024, subject to customary closing conditions.
AltaGas said it intends to use the offer’s net proceeds to reduce its outstanding senior notes and bank debt.
The offer follows the company’s Aug. 31 announcement that it acquired multiple midstream, storage and terminals from Tidewater Midstream and Infrastructure Ltd. for CA$650 million (US$480 million).
Total consideration comprised CA$325 million (US$239 million) in cash and the issuance of approximately 12.5 million AltaGas common shares to Tidewater.
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