Wednesday, July 17, 2024

TC Power promoting New England gasoline system to cut back debt

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CALGARY — TC Power Corp. and its accomplice have signed a deal to promote the Portland Pure Gasoline Transmission System (PNGTS) for US$1.14 billion together with the idea of US$250 million in debt.

The customer is BlackRock Inc., by way of a fund managed by its diversified infrastructure enterprise, and funding funds managed by Morgan Stanley Infrastructure Companions.

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TC Power holds a 61.7 per cent stake in PNGTS, whereas a subsidiary of Energir LP owns 38.3 per cent.

“Right this moment’s announcement represents continued progress towards reaching our 2024 strategic precedence of enhancing our stability sheet energy by delivering roughly $3 billion in asset divestitures,” Francois Poirier, chief govt of TC Power, stated in a press launch.

Poirier described PNGTS as a “non-core asset,” including the sale represented “a novel alternative to assist our … deleveraging priorities.”

He stated that the corporate expects to announce additional asset gross sales in the course of the yr.

PNGTS is a 475-kilometre pure gasoline pipeline system that serves the higher New England and Atlantic Canada markets.

It receives pure gasoline from the Trans Quebec and Maritimes Pipeline by way of the Canadian Mainline.

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The sale is predicted to shut in mid-2024, topic to regulatory approvals and customary closing circumstances.

Funds from the sale will likely be break up to replicate the possession share between TC Power and Energir.

— With recordsdata from Finanical Put up

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