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
Jon.Morrison@altagas.ca
Aaron Swanson
Vice
President, Investor Relations
Aaron.Swanson@altagas.ca
Investor Inquiries
1-877-691-7199
investor.relations@altagas.ca
Media Inquiries
1-403-206-2841
media.relations@altagas.ca
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.
SOURCE AltaGas Ltd.
