CALGARY, AB, Sept. 23, 2024 /CNW/ - AltaGas Ltd. ("AltaGas" or the "Company") (TSX: ALA) has closed its previously announced US$900 million offering of 7.20 percent Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2054 (the "Notes" or the "Offering"). After accounting for the impact of the cross-currency swap arrangement that AltaGas has executed, which converted the underlying proceeds and interest costs of the Notes into Canadian dollars, the Notes will have an effective annual interest rate of 6.90 percent over the initial ten-year period. The Notes are callable at the first reset date of October 15, 2034.
As previously disclosed, AltaGas intends to use the net proceeds of the Offering to reduce the Company's outstanding senior notes and bank debt. AltaGas anticipates improved credit metrics from the Company's credit rating agencies as a result of the 50 percent equity treatment provided on hybrid debt.
The Notes have not been, and will not be, registered for offer or sale under the U.S. Securities Act of 1933, as amended (the "Securities Act") or the securities laws of any state or other jurisdiction and have not been offered or sold except (i) to "qualified institutional buyers" (as defined in Rule 144A under the Securities Act ("Rule 144A")) in reliance on the exemption from the registration requirements of the Securities Act provided by Rule 144A or (ii) in offshore transactions in compliance with Regulation S under the Securities Act ("Regulation S") and, in each case, in compliance with applicable securities laws. In addition, the Notes were offered and sold in Canada and outside Canada without being qualified under a prospectus in any jurisdiction of Canada in reliance on one or more exemptions from the prospectus requirements in Canada. The Notes are subject to transfer restrictions and deemed acknowledgements, representations and agreements relating thereto. This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the Notes and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such an offer, solicitation or sale would be unlawful.
About AltaGas
AltaGas is a leading North American infrastructure company that connects customers and markets to affordable and reliable sources of energy. The Company operates a diversified, lower-risk, high-growth Energy Infrastructure business that is focused on delivering stable and growing value for its stakeholders.
For more information visit www.altagas.ca or reach out to one of the following:
Jon Morrison Senior Vice President, Corporate Development and Investor Relations [email protected]
FORWARD-LOOKING STATEMENTS This news release contains forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to AltaGas are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, the intended use of net proceeds of the Offering; and the anticipated benefits of the Offering including improved credit metrics from AltaGas' credit rating agencies. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements reflect AltaGas' current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, governmental or regulatory developments, general economic conditions and other factors set out in AltaGas' public disclosure documents. Many factors could cause AltaGas' actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release as intended, planned, anticipated, believed, sought, proposed, estimated or expected, and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such forward-looking statements speak only as of the date of this news release. AltaGas does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
