TC PipeLines LP (NYSE: TCP) said Jan. 4 it closed the acquisition of a 49.9% stake in a U.S. natural gas pipeline from TransCanada Corp. (NYSE: TRP) for $223 million.
The stake sale in Portland Natural Gas LP (PNGTS) would include $188 million in cash and debt of $35 million. TransCanada owns a 61.7% stake in PNGTS, which delivers natural gas to the U.S. northeast.
Proceeds will be used to fund TransCanada's capital program and further diversify the partnership's asset base, "positioning it for continued growth," said Russ Girling, TransCanada's president and CEO, in a statement on Nov. 6.
Houston-based TC PipeLines is the MLP of TransCanada, which is headquartered in Calgary, Alberta.
The acquisition, effective Jan. 1, is expected to be immediately accretive to distributable cash flow and earnings, the release said.
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