TC Energy To Earn $600M From Stake Sale In Coastal GasLink
Zacks Investment Research | Dec 29, 2019 11:40PM ET
TC Energy Corporation (TSX:TRP) recently announced a deal wherein it will divest its 65% stake in the Coastal GasLink Pipeline Project (Coastal GasLink or the Project). Per the agreement, TC Energy will be offloading the interest to private equity company KKR & Co. Inc. (NYSE:KKR) and Canadian fund manager Alberta Investment Management Corporation (AIMCo) on behalf of certain AIMCo clients.
Simultaneously with this sale, Coastal GasLink is envisioned to acquire financing from a syndicate of banks with the intention of funding up to 80% of the project during construction.
The company’s worth $30-billion capital program will be partly backed by the divestiture of the Coastal GasLink pipeline. Moreover, the deal will help maximize its shareholder value.
Coastal GasLink is designed to be a 670-kilometer long pipeline, stretching from north eastern B.C. to LNG Canada’s export terminal in Kitimat. The pipeline with an intended initial capacity of 2.1 billion cubic feet per day is projected to supply natural gas to the Royal Dutch Shell’s Zacks Investment Research
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