Williams Cos. Inc. (NYSE: WMB) and its MLP agreed on Aug. 8 to sell their Canadian NGL midstream businesses to Inter Pipeline Ltd. for total cash proceeds of C$1.35 billion (US$1.03 billion).

This is the first major deal by Williams Cos. since Energy Transfer Equity LP (NYSE: ETE) walked away from its more than $20 billion takeover of the company in June.

Williams Partners LP (NYSE: WPZ) will get a net consideration of about $817 million, while Williams Cos. will get about $209 million after a waiver of $150 million of incentive distribution rights in the quarter.

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Both companies said they planned to use the proceeds to reduce borrowings on credit facilities.

The assets include: two liquids extraction plants located near Fort McMurray, Alberta; a fractionator near Redwater, Alberta; and a pipeline system that connects these facilities.

Fort McMurray in northern Alberta, the heart of Canada's oil sands region, was affected by an uncontrollable wildfire in May.

The Canadian unit had attracted at least seven bidders, including Enbridge Inc. (NYSE: ENB), and pension funds, such as Canada Pension Plan Investment Board and Ontario Teachers' Pension Plan, Reuters reported last month, citing sources.

Inter Pipeline said it would also assume responsibility for the potential construction of a C$1.85 billion propane dehydrogenation facility in Alberta.

The deal, which is expected to immediately add to funds from operations per share, is estimated to reduce Inter Pipeline's annual cash taxes by about $70 million in 2017 through 2019.

Inter Pipeline said it expected to fund the deal by proceeds from the issuance of 22.43 million subscription receipts, new term debt and available capacity on its credit facility. (US$1 = C$1.32)