AltaGas completes US$900 million hybrid note offering
Torys acted as counsel to AltaGas with a team that included Janan Paskaran, Logan Orr and Gordon Walters (Canadian securities), Chris Bornhorst, Jude Gee and Connor Murray (US securities), Craig Maurice and Steve Marshall (Canadian tax), David Mattingly and Debra Aboodi (US tax).
On September 23, 2024, AltaGas Ltd. ("AltaGas") closed its previously announced US$900 million offering of 7.20% fixed-to-fixed reset rate junior subordinated notes, due October 15, 2054.
After accounting for the impact of the cross-currency swap arrangement that AltaGas 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% over the initial ten-year period. The notes are callable at the first reset date of October 15, 2034.
AltaGas intends to use the net proceeds of the offering to reduce its outstanding senior notes and bank debt. AltaGas anticipates improved credit metrics from their credit rating agencies as a result of the 50% equity treatment provided on hybrid debt.
Further information can be found on Newswire’s website.
AltaGas is a leading North American infrastructure company that connects customers and markets to affordable and reliable sources of energy. AltaGas operates a diversified, lower-risk, high-growth Utilities and Midstream business that is focused on delivering resilient and durable value for its stakeholders.