Canada-based TC Energy’s (TRP) new spinoff company South Bow Corp. closed a CA$7.9 billion (US$5.8 billion) notes offering Aug. 28 to fund the spinoff transaction, TC announced.

“Establishing the independent, investment-grade debt capital structure was met with strong market interest and is one of the final milestones required to consummate the spinoff transaction,” the company said in a press release.

South Bow will be taking over Keystone, one of the largest crude pipelines in North America that can ship up to 622,000 bbl/d from Canada into the U.S.

The deal is expected to close in October and will shift billions in debt from TC Energy to the new South Bow Corp.

The notes, issued in Canadian and U.S. dollars, were issued by South Bow Canadian Infrastructure Holdings Ltd. and 6297782 LLC, which will become wholly-owned subsidiaries of South Bow once the spinoff is completed.

The notes offering was announced June 4 after shareholders approved the move, following a two-year strategic review conducted by TC Energy.