TC PipeLines LP (NYSE: TCP) announced Feb. 25 it will acquire the remaining interest in Gas Transmission Northwest LLC (GTN) for $446 million.

The Houston-based company said it entered into an agreement on Feb. 24 to buy the remaining 30% interest in GTN from TransCanada Corp. (NYSE, TSE: TRP).

The transaction is comprised of of $253 million in cash, the assumption of $98 million in proportional GTN debt and the issuance of $95 million of new class B units to TransCanada. The company plans to fund the cash portion of the transaction through the issuance of debt and common equity.

The transaction was approved by the goard of directors of the general partner, based on approval and recommendation from the board's conflicts committee which is comprised entirely of independent directors.

Deutsche Bank was financial adviser to TC PipeLines. Orrick, Herrington & Sutcliffe LLP was its legal counsel and Wood Mackenzie was natural gas market outlook advisor.

The transaction is expected to close on April 1.