tcp sells

Bought 25% WI in Gas Transmission Northwest LLC & Bison Pipeline LLC, which feature more than 1,600 miles of gas pipelines from Western Canada Sedimentary Basin to U.S. West Coast.

Omaha, Nebraska-based TC PipeLines LP (Nasdaq: TCLP) has completed its acquisition to acquire a 25% interest in each of Gas Transmission Northwest LLC and Bison Pipeline LLC from subsidiaries of Calgary-based TransCanada Corp. (Toronto: TRP; NYSE: TRP) for an aggregate purchase price of US$605 million, which includes US$81 million--or 25% of Gas Transmission's debt. The acquisition is expected to be immediately accretive to partnership cash flows and earnings.

The partnership funded the acquisition with net proceeds of approximately $338 million received from its recently closed equity offering, a draw of $61 million from its bridge loan facility and the balance drawn from its $250-million senior revolving credit facility together with operating cash flow. Plans are currently underway to put longer term debt financing for the acquisition in place.

TC PipeLines has interests in 5,560 miles of federally regulated U.S. interstate natural gas pipelines which serve markets across the United States and Eastern Canada.