Purchasing news: TC PipeLines acquires further stakes in two pipelines

Pipeline operator TC PipeLines LP (TCP) has completed the purchase of an extra 45% stake in both Gas Transmission Northwest LLC (GTN) and Bison Pipeline LLC (Bison). This purchase was made from the affiliates of North American energy company TransCanada Corporation. TCP has paid US$ 1.05 billion for this transaction.

Funding details

The payment was funded with US$ 381 million net proceeds from the offering of equity in May, a five year US$ 500 million new term loan and US$ 146 million of outstanding debt. The remaining US$ $ 23 million was financed by the credit facility of TCP.

This deal has increased TCP’s stake to 70% from the pre-existing 25% in the GTN and the Bison pipeline system. Moreover, the partnership believes that this acquisition will immediately increase its earnings and cash flow.

TCP’s pipeline interests

TCP is a master limited partnership with interests in six pipeline systems: Northern Border Pipeline Company, Great Lakes Gas Transmission LP, Tuscarora Gas Transmission Company, North Baja Pipeline LLC, Bison Pipeline LLC, and Gas Transmission Northwest LLC.

Of particular significance is its stake in the Northern Border Pipeline, a key player in natural gas transportation from western Canada to the US Midwest.

Edited from various sources by Elizabeth Corner.

Read the article online at: https://www.worldpipelines.com/business-news/04072013/tc_pipelines_acquires_further_stakes_in_gtn_and_bison_pipelines_377/