AltaGas completes $2.5B acquisition financing

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By Ted Liu

AltaGas Ltd. (TSX: ALA) has closed previously announced $2.5 billion subscription receipts financing, consisting of a bought deal public offering of 67,800,000 subscription receipts at $31.00 per subscription receipt for proceeds of approximately $2.1 billion and a private placement with OMERS of 12,910,000 subscription receipts for gross proceeds of approximately $400 million.

TD Securities Inc., RBC Capital Markets and J.P. Morgan Securities Canada Inc. acted as lead agents for the public offering and joint bookrunning agents on the private placement.

Net proceeds will be used to partially finance the previously announced $8.4 billion acquisition of WGL Holdings, Inc. (NYSE: WGL), the parent company of Washington Gas Light Company, a regulated natural gas utility company headquartered in Washington, D.C.

Stikeman Elliott LLP and Vinson & Elkins L.L.P. acted as Canadian and US legal counsel to AltasGas respectively. Blake, Cassels & Graydon LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted legal Canadian and US counsels to the underwriters.

photo credit: AltaGas>